1 Function: SUM; Formula: Add, Divide, Subtract, Multiply; Cell Referencing 2 W Using Excel For Incremental Analysis for Elimination of a Product Student Work Area 4 Line Required: Provide input into cells shaded in yellow in this template. UT PROBLEM Use mathematical formulas with cell references to the Problem or work 6 Cawley Company makes three models of tasers. Information on the area as indicated. Use the SUM function with cell references to add 7 three products is given below. amounts as indicated 8 Tingler Shocker Stunner 10 Sales $ 300,000 $ 500,000 $ 200,000 a. Compute current net income for Cawley Company. 11 Variable expenses 150,000 200,000 145,000 12 Contribution margin 150,000 300,000 55,000 Current net income 13 Fixed expenses 120,000 230,000 95,000 14 Net income $ 30,000 $ 70,000 $. (40,000) b. Compute net income by product line and in total for Cawley 15 Company if the company discontinues the Stunner product line. 16 Fixed expenses consist of common costs allocated to the three (Hint: Allocate the $300,000 common costs to the two remaining 17 products based on relative sales, as well as direct fixed expenses product lines based on their relative sales.) 18 unique to each model. The common costs will be incurred regardless of 19 how many models are produced. The direct fixed expenses would be Tingler Shocker 20 eliminated if that model is phased out. These fixed expenses are Common cost allocation 21 22 Allocated fixed common costs $ 300,000 Tingler Shocker Total 23 Direct fixed expenses: Sales 24 Tingler 30,000 Variable expenses UVU US Contribution marain