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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?
| $140000 |
| $118000 |
| $100000 |
| $150000 |
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