Exercise 21-16 Your answer is partially correct. Try again 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 Shocker Stunner $280,000 $520,000 $200,000 ,000 63,000 96,600 $18,760 $92,840 $(33,600) 130,000 192,000 137 150,000 131,240 235,160 328,000 Fixed expenses consist of $308,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $45,000 (Tingler), $75,000 (Shocker), and $35,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income Compute current net income for Cawley Company Net income 78000