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Fido Company has three segments, one of which is unprofitable. The Duchess Doggy Biscuit segment...

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Accounting

Fido Company has three segments, one of which is unprofitable. The Duchess Doggy Biscuit segment had the following results last period:

Sales $1,040,000
Variable expenses (640,000)
Contribution margin 400,000
Fixed expenses (540,000)
Net loss $(140,000)

If the Duchess Doggy Biscuit segment is eliminated, 50% of the fixed expenses can also be eliminated, the other 50% will be reallocated. What will happen to company net income if this product line is eliminated?

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