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12. Bubblemania has three product lines - A, B, and C. A B C Total Sales $10,000 Variable costs Contribution Margin Fixed costs Net income
12. Bubblemania has three product lines - A, B, and C. A B C Total Sales $10,000 Variable costs Contribution Margin Fixed costs Net income 9,000 12,000 7,000 6,000 2,000 6,000 6,000 3,000 31,000 17,500 13,500 12,500 1,000 4,500 5,500 3,500 2,000 (4,000) 3,000 Product line B appears unprofitable, and management is considering discontinuing the line. How would the discontinuation of Product line B affect net income? a. increase by $4,000 b. decrease by $4,000 c. increase by $2,000 d. decrease by $2,000 e. increase by $6,000
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