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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 $205000...

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Accounting

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A company has three product lines, one of which reflects the following results: Sales $205000 115000 Variable expenses Contribution margin 90000 Fixed expenses 130000 Netloss (40000) If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will decrease by $12000 O increase by 540000 decrease by $90000. increase by 512000

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