Reference no: EM13974113
Cawley Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $296,940 $500,220 $204,650 Variable expenses 147,930 194,310 138,090 Contribution margin 149,010 305,910 66,560 Fixed expenses 118,889 229,649 95,921 Net income $30,121 $76,261 $(29,361) Fixed expenses consist of $301,500 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,523 (Tingler), $79,105 (Shocker), and $34,331 (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. Question: Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $301,500 common costs to the two remaining product lines based on their relative sales.)(Round answers to the nearest whole dollar, e.g. 5,275.) Tingler Net Income $__________ Shocker Net Income$___________ Total Net Income $___________
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Advancement of mobile device technologies.
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