A company has three product lines, one of which has the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss $213000 125000 88000 131000 $ (43000) 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 decrease by $88000. increase by $43000. increase by $9400. O decrease by $9400.

A company has three product lines, one of which has the following results: If this product line is eliminated, 60% of the fwed 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 decrease by $88000 increase by $43000. increase by $9400. decrease by $9400