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Bonita Machines has four product lines, one of which reflects the following results: Sales $217000 Variable expenses 116000 Contribution margin 101000 Fixed expenses 116000 Net

Bonita Machines has four product lines, one of which reflects the following results:

Sales $217000
Variable expenses 116000
Contribution margin 101000
Fixed expenses 116000
Net loss $(15000)

If this product line is eliminated, 45% of the fixed expenses 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 increase by $15000.

It will decrease by $48800.

It will decrease by $33800.

It will increase by $52200.

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