A company has three product lines, one of which has the following results: Sales $215000 Variable expenses 125000 Contribution margin 90000 Fixed expenses 130000 Net loss $ (40000) If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will increase by $40000. decrease by $90000. decrease by $12000. increase by $12000. Save for Later Attempts: 0 of 1 used Submit Answer