Problem: Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Assume none of the fixed expenses for the hard rubber line are avoidable.
|
|
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
|
$25,000
|
($15,000)
|
$110,000
|
Required: What will be total net income if the line is dropped?
a. $125,000
b. $103,000
c. $105,000
d. $140,000
We, at Total Net Income Assignment Help service provides the most excellent online service in the industry and is most preferred by the students from all over the world.
Tags: Total Net Income Assignment Help, Total Net Income Homework Help, Total Net Income Coursework, Total Net Income Solved Assignments