View Policies Current Attempt in Progress Clarington Company makes three models of phasers. Information on the three products is given below: Sales Variable expenses Contribution margin Fixed expenses Stunner $301,000 154,000 147,000 117,000 $30,000 Double-Set $451,500 190.500 261,000 218,900 $42.100 Mega-Power $188,125 142,000 46,125 87,900 ($41,775) Net income Fixed expenses consist of $290,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,300 (Stunner), $74,600 (Double-Set), and $29,900 (Mega-Power). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is discontinued. John Liu, an executive with the company, feels the Mega-Power line should be discontinued to increase the company's net income. Calculate current net income for Clarington Company. Current net income $ e Textbook and Media Question Part Score --/2 Calculate net income by product line and in total for Clarington Company if the company discontinues the Mega-Power product line. (Hint: Allocate the $290,000 common costs to the two remaining product lines based on their relative sales.) Stunner Double-Set Total Net income $ e Textbook and Media Question Part Score --/6 Should Clarington eliminate the Mega-Power product line? Why or why not? Clarington eliminate the Mega-Power product line. Elimination of the line would cause net income to