Challenge Exercise 7-2 (Part Level Submission) Safe and Secure, Inc. produces three models of home security systems. Information on the three products is given below: Assurance Decoder Sales Variable expenses Burglar Beware $302,200 211,540 90,660 145,200 $(54,540 ) $456,300 $760,500 228,150 304,200 228,150 456,300 183,100 341,800 $45,050 $114,500 Contribution margin Fixed expenses Net income Fixed expenses consist of $454,000 of common costs allocated to the three products based on relative sales, and additional fixed costs of $44,400 (Assurance), $119,100 (Decoder), and $52,600 (Burglar Beware). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if model is phased out. Matt Dillon, an executive with the company with extensive law enforcement background, feels that the Burglar Beware line should be discontinued to increase the company's net income. (b) Compute net income by product line and in total for Safe and Secure, Inc., if the company discontinues the Burglar Beware product line. (Hint: Allocate the $454,000 common costs to the two remaining product lines based on their relative sales.) (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Assurance Decoder Company Total Net income $ $ Click if you would like to Show Work for this question: Open Show Work