Cawley Company makes three models of tasers. Information on the three products is given below.

Â	Â	Tingler	Â	Shocker	Â	Stunner	Â
Sales	Â	$297,170	Â	$502,420	Â	$195,680	Â
Variable expenses	Â	150,870	Â	202,770	Â	142,810	Â
Contribution margin	Â	146,300	Â	299,650	Â	52,870	Â
Fixed expenses	Â	118,864	Â	231,493	Â	93,508	Â
Net income	Â	$27,436	Â	$68,157	Â	$(40,638)	Â

Fixed expenses consist of $298,200 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,827 (Tingler), $80,959 (Shocker), and $34,879 (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 companyAc€?cs net income.

A) Compute current net income for Cawley Company.

Net income

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$

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B )Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $298,200 common costs to the two remaining product lines based on their relative sales.) (Round answers to the nearest whole dollar, e.g. 5,275.)

Tingler Net Income	Â	$	Â
Shocker Net Income	Â	$	Â
Total Net Income	Â	$	Â

Show transcribed image text Cawley Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $297,170 $502,420 $195,680 Variable expenses 150,870 202,770 142,810 Contribution margin 146,300 299,650 52,870 Fixed expenses 118,864 231,493 93,508 Net income $27,436 $68,157 $(40,638) Fixed expenses consist of $298,200 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,827 (Tingler), $80,959 (Shocker), and $34,879 (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 companyA???A????A????s net income. A) Compute current net income for Cawley Company. Net income $ Total Net Income $ Shocker Net Income $ B )Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $298,200 common costs to the two remaining product lines based on their relative sales.) (Round answers to the nearest whole dollar, e.g. 5,275.) Tingler Net Income