Crane Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmentedr
income statement for a recent period follows:r
rAssume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line isr
dropped?r
$40000r
$155000r
$75000r
$53000

Transcribed Image Text:

Sales Variable expenses Contribution margin Fixed expenses Net income (loss) Wood $400000 $100000 275000 125000 75000 Aluminum $50000 40000 60000 35000 $ 25000 Hard Rubber $65000 $565000 58000 7000 22000 Total $(15000) 373000 192000 132000 $60000 Sales Variable expenses Contribution margin Fixed expenses Net income (loss) Wood $400000 $100000 275000 125000 75000 Aluminum $50000 40000 60000 35000 $ 25000 Hard Rubber $65000 $565000 58000 7000 22000 Total $(15000) 373000 192000 132000 $60000

Answer rating: 100% (QA)

Option C is correct 75000 Working The net income in the case when the l... View the full answer