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A company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss $214000 121000 93000

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A company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss $214000 121000 93000 130000 $ (37000) 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 increase by $15000. decrease by $93000 oo decrease by $15000. increase by $37000

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