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Swifty Corporation produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum

Swifty Corporation produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows:

Wood

Aluminum

Hard Rubber

Total

Sales

$520000

$210000

$65000

$795000

Variable expenses

275000

70000

58000

403000

Contribution margin

245000

140000

7000

392000

Fixed expenses

75000

35000

22000

132000

Net income (loss)

$170000

$ 105000

$(15000)

$260000

Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

$70000

$125000

$275000

$253000

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