Plz A, b, c answer 2 like gives (b)Compute net income by product line and in total for Sunland Company if the company discontinues the Stunner product line. (Hint:Allocate the $308,000 common costs to the two remaining product lines based on their relative sales.)Tingler Net IncomeShocker Net IncomeTotal Net Income(c)No$Why or why not?$Should Sunland eliminate the Stunner product line?$Net income would decrease from $eTextbook and MediaSave for Later Last saved 2 days ago.to $Attempts: 1 of 3 usedSubmit Answer Sunland Company makes three models of tasers. Information on the three products is given below.SalesVariable expensesContribution marginFixed expensesNet incomeTingler$298,000154,700Net income $143,300(b)120,784$22,516Shocker$502,000201,500300,500235,216$65,284Compute current net income for Sunland Company.Fixed expenses consist of $308,000 of common costs allocated to the three products based on relative sales, as well as direct fixedexpenses unique to each model of $29,000 (Tingler), $80,600 (Shocker), and $34,400 (Stunner). The common costs will be incurredregardless 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)Stunner56200$200,000135,60064,40096,000$(31.600)

The net income of a company refers to its profits after all the expenses have been taken into…

Sales Variable expenses Contribution margin Fixed expenses Net income Tingler Shocker $298,000 $502,000 154,700 201,500 143,300 300,500 120,784 235,216 $22,516 $65,284 Net income $ Stunner $200,000 135,600 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 $29,000 (Tingler), $80,600 (Shocker), and $34,400 (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 Sunland Company. 56200 64,400 96,000 $(31.600)

Sales Variable expenses Contribution margin Fixed expenses Net income Tingler Shocker $298,000 $502,000 154,700 201,500 143,300 300,500 120,784 235,216 $22,516 $65,284 Net income $ Stunner $200,000 135,600 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 $29,000 (Tingler), $80,600 (Shocker), and $34,400 (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 Sunland Company. 56200 64,400 96,000 $(31.600)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...

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