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A company has three product lines, one of which reflects the following results: If this product line is eliminated, 60% of the fixed expenses can

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A company has three product lines, one of which reflects the following results: If this product line is eliminated, 60% of the fixed expenses can 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 A) increase by $12,000. B) decrease by $12,000. C) decrease by $90,000. D) increase by $40,000

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