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Ajax company has four product lines, one of which reported the following financial results for the current year: If this product line is eliminated, 6

Ajax company has four product lines, one of which reported the following financial results for the current year:
If this product line is eliminated, 60% of the fixed expenses can be eliminated because they are direct fixed costs, and the remaining
40% of the fixed costs will be allocated to other product lines because they are allocated fixed costs. If management decides to
eliminate this product line, the company's operating income is expected to
increase by $50000.
decrease by $104000
decrease by $14000.
increase by $14000.
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