Question
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
$630000, $320000 , $65000 , $1015000
Variable expenses 385000, 260000 ,58000 ,703000
Contribution margin 245000, 60000, 7000 ,312000
Fixed expenses 75000, 35000, 22000, 132000
Net income (loss) $170000, $ 25000, $(15000),$180000
Assume all 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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