Question: I did something wrong.. Please help.. thanks! Clarington Company makes three models of phasers. Information on the three products is given below: Sales $304,000 $456,000

I did something wrong.. Please help.. thanks!


Clarington Company makes three models of phasers. Information on the three products is given below: Sales $304,000 $456,000 $190,000 Variable expenses 154,500 201,000 142,500 Contribution margin 149,500 255,000 47,500 Fixed expenses 121,000 221,900 88,500 Net inoorne $23,500 $33,100 ($41,000) Fixed expenses consist of $297,000 of common costs allocated to the three products based on relative sales, and additional xed expenses of $29,600 (Stunner), $75,200 [Double-Set}, and $29,100 [Mega-Power]. The common costs will be incurred regardless of how many models are produced. The other xed expenses would be eliminated if a model is discontinued. John Liu. an executive with the company, feels the Mega-Power line should be discontinued to increase the company's net income. Calculate net income by product line and in total for Clarington Company if the company discontinue; the Mega-Power product line. (Hint: Allocate the $297,000 common costs to the two remaining product lines based on their relative sales.) Netinoome $ 24360 $ 130993 $ 155353
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