Reference no: EM132550648

Abel 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                             $500,000          $200,000              $65,000            $765,000

Variable expenses               325,000           140 000               58 000              523 000

Contribution margin            175,000              60,000                 7,000              242,000

Fixed expenses                    25,000               35,000                  22,000               132,000

Net income (loss)                $100,000                $ 25,000           $(15,000)          $110,000

Question 1: Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?