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Bubblemanis has three product lines - A, B, and C. A B C Total Sales $10,000 $9,000 $12,000 $31,000 Variable costs 4,500 7,000 6,000 17,500

Bubblemanis has three product lines - A, B, and C.

A B C Total
Sales $10,000 $9,000 $12,000 $31,000
Variable costs 4,500 7,000 6,000 17,500
Contribution margin 5,500 2,000 6,000 13,500
Fixed costs 3,500 6,000 3,000 12,500
Net income 2,000 (4,000) 3,000

1,000

Product line B appears unprofitable, and management is considering discontinuing the line. How would the discontinuation of Product line B affect net income?

Select one:

a. increase by $2,000

b. decrease by $2,000

c. decrease by $4,000

d. increase by $4,000

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