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Cawley Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contri

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a Tingler Shocker Stunner
Sale                       302000                       498000       200000
Varible Expenses                       150900                       193100       137700
Contrbution margin                       151100                       304900         62300
Fixed Expenses                       121412                       232988         96200
Net Income                         29688                         71912        -33900
Total Net Income for cawley company 29688+71912-33900 =         67700
b If discontinue Stunner Line
Tingler Shocker
Sale                       302000                       498000
Varible Expenses                       150900                       193100
Contrbution margin                       151100                       304900
Fixed Expenses Common                       115515                       187995
additional fixed Cost                         29688                         71912
Net Income                           5697                         44993
Net Income of Company 5697+44993 =         50690
Fixed Common Expenses (306000/800000)*302000
=115515
(302000/800000)*498000
=187995
187995
c cawley should not eliminate Stunner product line because it's reduce
total profit by $ 17010 (67700-50690)
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