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

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Accounting

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Oriole Company makes three models of tasers. Information on the three products is given below. Fixed expenses consist of $292,000 of common costs allocated to the three products based on relative sales, as well as direct foxed expenses unique to each model of $30,000 (Tinglen), $79,200 (Shocker), and $34,400 (Stunnes). The coinmon costs will be incurred regardless of how many models are produced. The direct fared epentes would be eliminated if that model is phased out. James Watt, an excutive with the company, feels the Stunner line should be discontinued to increase the company/s net income:- (a) Compute current net income for Oriole Company. Net income 5 (b) Compute net income by product line and in total for Oriole Compamy if the company discontinues the Stunner product line. (Hint: Allocate the $292,000 common costs to the two remaining product lines based on their relative sales) (c) Should Oriole eliminate the Stunner product line? Why or why not? Net income would troms te 5

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