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Z Your answer is partially correct. Try again. Cawley Company makes three models of tasers. Information on the three products is given below. Tingler Shocker
Z Your answer is partially correct. Try again. Cawley Company makes three models of tasers. Information on the three products is given below. Tingler Shocker stunner Sales $300,000 $500,000 $200,000 Variable expenses 155,000 190,000 135,000 Contribution margin 145,000 310,000 65,000 Fixed expenses 27,000 215,000 88,000 $18,000 $95,000 $(23,000) 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 $40,000 (Tingler), $70,000 (Shocker), and $30,000 (stunner). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out. James Watt, an executive with the company, feels the stunner line should be discontinued to increase the company's net income (a) Compute current net income for Cawley Company. Net income 90000
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