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Bonita Industries produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed...

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Accounting

Bonita Industries 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

$450000

$150000

$65000

$665000

Variable expenses

300000

90000

58000

448000

Contribution margin

150000

60000

7000

217000

Fixed expenses

75000

35000

22000

132000

Net income (loss)

$75000

$ 25000

$(15000)

$85000

Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped

  • A.

    $78000

  • B.

    $100000

  • C.

    $130000

  • D.

    $90000

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