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Waterway Industries produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum

Waterway Industries 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 $520000 $210000 $65000 $795000
Variable expenses 330000 150000 58000 538000
Contribution margin 190000 60000 7000 257000
Fixed expenses 75000 35000 22000 132000
Net income (loss)

$115000

$ 25000

$(15000)

$125000

Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

image text in transcribed

$140000

$118000

$100000

$150000

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