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Vaughn Manufacturing produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Sales Variable
Vaughn Manufacturing produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Sales Variable expenses Wood $670000 330000 Contribution margin 340000 O $318000 O $130000 O $340000 O $120000 Fixed expenses Net income (loss) $265000 75000 Aluminum Hard Rubber $230000 120000 110000 35000 $75000 Total $65000 $965000 58000 7000 22000 $(15000) 508000 457000 132000 $325000 Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?
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