HELP WITH D$!!!$ ildhorse, Inc. produces three models of home security systems. Information on the three products is given below:

Fixed expenses consist of $$452,800$ of common costs allocated to the three products based on relative sales, and additional fixed costs

of $$44,100($Assurance$),$ $$120,000($Decoder$),$ and $$53,100($Burglar Beware$).$ 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.

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.

$($a$)$

Your answer is correct.

Compute current net income for Wildhorse, Inc. $($Enter loss using either a negative sign preceding the number e$.$g$.-2,945$ or parentheses

e$.$g$.(2,945).)$

Net income $

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Solution

Attempts: $1$ of $1$ used

$($b$)$

Correct Answer

Your answer is correct.

Compute net income by product line and in total for Wildhorse, Inc., if the company discontinues the Burglar Beware product line.

$($Hint: Allocate the $$452,800$ 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$.).)$

Attempts: $1$ of $1$ used

$($c$)$

Correct Answer

Your answer is incorrect.

Should Wildhorse, Inc., eliminate the Burglar Beware product line? Why or why not?

$,$ the total for the company is

when the Burglar Beware product line is excluded.

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Solution

Attempts: $1$ of $1$ used

$($d$)$

Assume instead that fixed expenses consist of $$144,350$ of common costs allocated to the three products equally, and additional

fixed costs of $$128,900($Assurance$),$ $$295,500($Decoder$),$ and $$101,250($Burglar Beware$).$ 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. Compute

net income by product line and in total for Wildhorse, Inc., if the company discontinues Burglar Beware product line. Should

Wildhorse, Inc., eliminate the Burglar Beware product line? Why or why not? $($Enter loss using either a negative sign preceding the

number e$.$g$.-2,945$ or parentheses eg$.(2,945).)$