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A company has three product lines, one of which reflects the following results: Sales $170,000 Variable expenses $100,000 Contribution Margin $70,000 Fixed expenses $110,000 Net
A company has three product lines, one of which reflects the following results:
Sales $170,000
Variable expenses $100,000
Contribution Margin $70,000
Fixed expenses $110,000
Net loss $(40,000)
If this product line is eliminated, 60% of the fixed expenses can be eliminated. If management decides to eliminate this product line, the company's net income will increase/decrease by?
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