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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: Wood Aluminum
Vaughn Manufacturing 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 $590000 $270000 $65000 $925000 Variable expenses 305000 170000 58000 533000 Contribution margin 285000 100000 7000 392000 Fixed expenses 75000 35000 22000 132000 Net income (loss) $210000 $65000 $(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? $253000 $55000 $170000 $275000
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