Lao Shu Bruce Company has three product lines, one of which reflects the following results: sales $215,000 Variable expenses 125,000 Contribution margin 90,000 Fixed expenses 140,000 Net loss $(50,000) If this product line is eliminated. 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will increase by $50,000. decrease by S90.000. decrease by $6,000. increase by S6.000. Phelan Corp has the following data: Sales $350,000 Variable expenses 150,000 Fixed expenses 275,000 What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments ($0 Fixed Costs go away)? $200,000 increase $200,000 decrease $275,000 decrease Cannot be determined from the data provided. Lao Shu Bruce Corp has the following information: Sales $900.000 Variable expenses 480,000 Fixed expenses 465,000 If this division is eliminated, the fixed expenses will be allocated to the company's other divisions ($0 Fixed Expenses go away). What is the incremental effect on net income if the division is dropped? $45.000 increase $465.000 decrease $420,000 decrease $435,000 increase