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Question(s) / Instruction(s):

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              75,000                   35,000             22,000            132,000

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

Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

A)           $125,000

B)            $103,000

C)            $105,000

D)           $140,000

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