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Expain why this answer? A company has three product lines, one of which reflects...

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Accounting

imageExpain why this answer?

A company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss $215,000 125,000 90,000 140,000 (50,000) If this product line is eliminated, 60% of the fixed expenses are traceable fixed expenses, which can be eliminated and the other 40% are common fixed expenses that cannot be avoided. If management decides to eliminate this product line, the company's net income will increase by $50,000 decrease by $90,000 decrease by $6,000 increase by $6,000

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