Cawley Company makes three models of tasers. As evident, the Stunner is not generating a profit,...

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Cawley Company makes three models of tasers. As evident, the Stunner is not generating a profit, so Cawley is considering dropping this model. Of course, if the model is dropped all of the revenue will be lost, but there will be savings of all the variable costs, and only 15.00% of the overall fixed costs will be saved. Should the Stunner be dropped or kept? Sales Tingler 300,000.00 Shocker Stunner 500,000.00 200,000.00 Varible Costs 150,000.00 200,000.00 145,000.00 Contribution Margin Fixed Costs 150,000.00 300,000.00 120,000.00 55,000.00 230,000.00 95,000.00 Net Income 30,000.00 70,000.00 (40,000.00) (check figure: net income before product dropped = $60,000.00) Cawley Company makes three models of tasers. As evident, the Stunner is not generating a profit, so Cawley is considering dropping this model. Of course, if the model is dropped all of the revenue will be lost, but there will be savings of all the variable costs, and only 15.00% of the overall fixed costs will be saved. Should the Stunner be dropped or kept? Sales Tingler 300,000.00 Shocker Stunner 500,000.00 200,000.00 Varible Costs 150,000.00 200,000.00 145,000.00 Contribution Margin Fixed Costs 150,000.00 300,000.00 120,000.00 55,000.00 230,000.00 95,000.00 Net Income 30,000.00 70,000.00 (40,000.00) (check figure: net income before product dropped = $60,000.00)