This is how the problem goes, i tried to line up the numbers as best as possible

Nichols Company makes three models of phasers. Information on the three products is given below.
Stunner Double-Set Mega-Power
Sales $300,000 $500,000 $200,000
Variable expenses 150,000 200,000 140,000
Contribution margin 150,000 300,000 60,000
Fixed expenses 120,000 225,000 90,000
Net income $30,000 $75,000 ($30,000)




Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $30,000 (Stunner), $75,000 (Double-Set), and $30,000 (Mega-Power). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out.
Ralph Port, an executive with the company, feels the Mega-Power line should be discontinued to increase the company's net income.

1. Compute current net income for Nichols Company.