A company has three product lines, one of which reflects the following results: Sales $235,000...
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Accounting
A company has three product lines, one of which reflects the following results: Sales $235,000 Variable expenses 160,000 Contribution margin 75,000 Fixed expenses 140,000 Net loss ($65,000) If this product line is eliminated, 30% of the fixed expenses can be eliminated and the other 70% will be allocated to other product lines. If management decides to eliminate this product line, the companys net income will:
Increase by $9,000
Decrease by $33,000
Decrease by $9,000
Increase by $33,000
Decrease by $42,000
Increase by $42,000
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