Abel Company Produces Three Versions of Baseball Bats: Wood Aluminum

Abel Company produces three versions of baseball bats: wood aluminum and hard rubber.A condensed segmented income statement for a recent period follows: $\begin{array} { l } & \text { Wood}& \text {Aluminum }& \text { Hard Rubber}& \text { Total }\\ \text {Sales }&\$500,000&\$200,000&\$65,000&\$765,000\\ \text {Variable expenses }&325,000&140,000&58,000&523,000\\ \text {Contribution margin }&175,000&60,000&7,000&242,000\\ \text { Fixed expenses }&75,000&35,000&22,000&132,000\\ \text { Net income (loss) }&100,000&\$25,000&\$15,000&\$110,000\\\end{array}$
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) $125000
B) $103000
C) $105000
D) $140000