A company has three product lines, one of which reflects the following results:

Sales $215,000 Variable expenses $125,000

Fixed expenses $140,000 Net loss $ (50,000)

If this product line is eliminated, 50% of the fixed expenses can be eliminated. If management decides to eliminate this product line, the company's net income will

a. increase by $50,000. b. decrease by $20,000.

c. decrease by $6,000. d. increase by $8,000