5. Diversified Machines has four product lines, one of which reflects the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss $330,000 180,.000 150,000 180,000 If this product line is eliminated, 40% of the fixed expenses can be eliminated and the other 60% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will A. increase by $30,000 B. decrease by $78,000 C. decrease by $48,000 D. increase by $72,000 6. Which of the following could affect a make or buy decision? A. Stability of purchase price B. Reliability of supplier C. Quality of part if produced by other company D. All of the above 7. The calculation to determine target cost is A. variable manufacturing costs+ fixed manufacturing costs B. sales price - C. variable manufacturing costs+ selling and administrative variable costs D. sales price-desired profit (variable manufacturing costs + fixed manufacturing costs)