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If a firm decides to eliminate a product line that produces a yearly net loss of $ 2 1 , 0 0 0 , its

If a firm decides to eliminate a product line that produces a yearly net loss of $21,000, its yearly net income
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will increase by $21,000 only if it can eliminate all of the fixed costs associated with that product line.
will decrease unless the firm can eliminate all of the fixed costs associated with that product line.
will increase by $21,000 only if it can eliminate all of the variable costs associated with that product line.
will automatically increase by $21,000.

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