+ HW-Chapter 7 Question 2 of 7 0.5/2 E Safe and Secure, Inc. produces three models of home security systems. Information on the three products is given below: Sales Variable expenses Contribution margin Fixed expenses Net income Assurance $455,400 227,700 227,700 176.400 $51,300 Decoder $759.000 303,600 455.400 345.000 $110,400 Burglar Beware $303.600 212,520 91,080 142.800 $(51,720) Fixed expenses consist of $446,600 of common costs allocated to the three products based on relative sales, and additional fixed costs of $44,400 (Assurance), $121,400 (Decoder), and $51,800 (Burglar Beware). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out. Matt Dillon, an executive with the company with extensive law enforcement background, feels that the Burglar Beware line should be discontinued to increase the company's net income. (a) Your answer is correct. Compute current net income for Safe and Secure, Inc. (Enter loss using either a negative sign preceding the number eg, -2,945 or parentheses eg. (2,945).) + HW-Chapter 7 Question 2 of 7 0.5/2. (a) Your answer is correct. Compute current net income for Safe and Secure, Inc. (Enter loss using either a negative sign preceding the number eg. -2,945 or parentheses eg. (2,945).) $ 109980 Net income Textbook and Media Attempts: 3 of 5 used (b) X Your answer is incorrect. Compute net income by product line and in total for Safe and Secure, Inc., if the company discontinues the Burglar Beware product line. (Hint: Allocate the $446,600 common costs to the two remaining product lines based on their relative sales.) (Enter loss using either a negative sign preceding the number eg.-2,945 or parentheses eg. (2,945).) Assurance Decoder Company Total + HW-Chapter 7 Question 2 of 7 0.5 / 2 = Attempts: 3 of 5 used (b) x Your answer is incorrect. Compute net income by product line and in total for Safe and Secure, Inc., if the company discontinues the Burglar Beware product line. (Hint: Allocate the $446,600 common costs to the two remaining product lines based on their relative sales.) (Enter loss using either a negative sign preceding the number eg.-2,945 or parentheses eg. 2,945).) Assurance Decoder Company Total Net income $ $ Textbook and Media Save for Later Attempts: 4 of 5 used Submit Answer (c) The parts of this question must be completed in order. This part will be available when you complete the part above