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Q2. (5point) A company has three product lines, one of which reflects the following results: Sales $215,000 Variable expenses $125,000 Fixed expenses $140,000 Net loss

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Q2. (5point) A company has three product lines, one of which reflects the following results: Sales $215,000 Variable expenses $125,000 Fixed expenses $140,000 Net loss $ (50,000) If this product line is eliminated, 50% of the fixed expenses can be eliminated. If management decides to eliminate this product line, the company's net income will a. increase by $50,000. b. decrease by $20,000. C. decrease by $6,000. d. increase by $8,000

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