Question: c. no yes increase decrease Current Attempt in Progress Cawley Company makes three models of tasers Information on the three products is given below. Sales

 c. no yes increase decrease Current Attempt in Progress Cawley Company

makes three models of tasers Information on the three products is given

c. no yes increase decrease

Current Attempt in Progress Cawley Company makes three models of tasers Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income Tingler $304 000 147.900 156,100 118.984 $37.116 Shocker $496,000 192.600 303,400 226,016 $77384 Stunner $200,000 143 100 56.900 94.000 $137.100) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales as well as direct fixed expenses unique to each model of 529.000 (Tingler), 579.200 (Shockerl and $34,800 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fired expenses would be eliminated if that model is phased out James Watt, an executive with the company feels the stunner line should be discontinued to increase the companys net income la) Compute current net income for Cawley Company Net income $ (b) O RI 400 m 3:35 PM DIE d d (ID 9 S 4 3 5 6 7 8 W Q ER Y O K ASD F Z x c y BN M SE Alt (6) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $296.000.common costs to the two remaining product lines based on their relative sales) Tingler Net Income 5 Shocker Net Income $ Total Net Income S Ic) Should Cawley eliminate the Stunter product line? Wiw or why not Netcome would from tos

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!