D Question 2 1 pts Sophie Company is considering closing one of its product lines. Current data on the product line are as follows Sales Revenue $27,000 Variable Costs 19,000 Direct avoidable fixed cost 5,000 Indirect allocated fixed costs** 7,000 Net Income (Loss) on the (4,000) product line *The direct avoidable fixed costs will be eliminated if the product line is closed. **The Indirect allocated fixed costs will remain the same whether the product line is continued or closed. Assume that Sophie decides to discontinue this product line. By how much will overall company net income change? Company net income will INCREASE by $3,000 if the product line is discontinued Company net income will INCREASE by $4,000 if the product line is discontinued Company net income will DECREASE by $4,000 if the product line is discontinued Company net income will DECREASE by $3,000 if the product line is discontinued