Your answer is partially correct. Cawley Company makes three models of tasers. Information on the three products is given below. Tingler $306,000 151,000 Sales Variable expenses Contribution margin Fixed expenses Net income Shocker $494,000 207,800 286,200 231,152 $55,048 Stunner $200,000 138,000 62.000 155,000 124,248 96,400 $30,752 $(34,400) Fixed expenses consist of $308,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $79,000 (Shocker), and $34,800 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that 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. (a) Compute current net income for Cawley Company. Net income $ 68200 (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $308,000 common costs to the two remaining product lines based on their relative sales.) Tingler Net Income $ 8645 Shocker Net Income $ 29655 Total Net Income $ 38300 (c) Should Cawley eliminate the Stunner product line? No Why or why not? Net income would decrease from $ 68200 to $ 38300