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Bonita Machines has four product lines, one of which reflects the following results: Sales $217000 Variable costs 116000 Contribution margin 101000 Fixed costs 116000 Net
Bonita Machines has four product lines, one of which reflects the following results: Sales $217000 Variable costs 116000 Contribution margin 101000 Fixed costs 116000 Net loss $(15000) If this product line is eliminated, 45% of the fixed costs can be eliminated and the other 55% will be allocated to other product lines. If management decides to eliminate this product line, what will happen to the company's net income? It will decrease by $33800. O It will increase by $15000. It will decrease by $48800. It will increase by $52200
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