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Sandhill Industries has three product lines. Management is concerned about the Jupiter product line, which...

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Accounting

Sandhill Industries has three product lines. Management is concerned about the Jupiter product line, which experienced an operating loss of $(38800) last year as result of sales of $225000, variable expenses of $135000, and fixed expenses of $128800. If this product line is eliminated, 60% of the fixed expenses can be eliminated, but the remaining 40% will have to be allocated to other product lines. If management decides to eliminate this product line, the companys net income will

O increase by $38800. O increase by $12720. O decrease by $12720. O decrease by $90000.

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