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  3. a company has three product lines, one of which re

A company has three product lines, one of which reflects the following results: Sales $170,000...

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Accounting

A company has three product lines, one of which reflects the following results:

Sales $170,000

Variable expenses $100,000

Contribution Margin $70,000

Fixed expenses $110,000

Net loss $(40,000)

If this product line is eliminated, 60% of the fixed expenses can be eliminated. If management decides to eliminate this product line, the company's net income will increase/decrease by?

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