Sunland Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum Hard Rubber Total Sales $530000 $250000 $65000 $845000 Variable expenses 280000 70000 58000 408000 Contribution margin 250000 180000 7000 437000 Fixed expenses 75000 35000 22000 132000 Net income (loss) $175000 $ 145000 $(15000) $305000 Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

Sunland Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum Hard Rubber Total Sales $530000 $250000 $65000 $845000 Variable expenses 280000 70000 58000 408000 Contribution margin 250000 180000 7000 437000 Fixed expenses 75000 35000 22000 132000 Net income (loss) $175000 $ 145000 $(15000) $305000 Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 31P: Morrill Company produces two different types of gauges: a density gauge and a thickness gauge. The...

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