A company has three product lines, one of which reflects the following results: Sales $232000...
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Accounting
A company has three product lines, one of which reflects the following results: Sales $232000 Variable expenses 133000 Contribution margin 99000 Fixed expenses 130000 Net loss $ (31000) 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 companys net income will
A. increase by $21000.
B. increase by $31000.
C. decrease by $99000.
D. decrease by $21000.
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