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Vincente, Inc. produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum
Vincente, Inc. 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 $500,000 $200,000 $65,000 $765,000 Variable expenses 325,000 140,000 58,000 523,000 Contribution margin 175,000 60,000 7,000 242,000 Fixed expenses 75,000 35,000 22,000 132,000 Net income (loss) $100,000 S 25,000 S(15,000) $110.000 Assume all of the fixed expenses for the hard rubber line are avoidable. What is total net income if the line is dropped? A. $105,000 B. $103,000 C. $125,000 D. $140,000
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