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3D printing has four product service lines, one of which reflects the following results: Sales $120,000 Variable costs 20,000 Fixed costs 130,000 Net loss $(30,000)
3D printing has four product service lines, one of which reflects the following results:
Sales $120,000
Variable costs 20,000
Fixed costs 130,000
Net loss $(30,000)
If this product line is eliminated, 50% of the fixed costs can be eliminated and the other 50% will be allocated to other product service lines. If management decides to eliminate this product line, what will happen to the company's net income?
Select one:
a. It will increase by $100,000.
b. It will decrease by $30,000.
c. It will increase by $30,000.
d. It will decrease by $100,000.
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