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Question 1 A company has three product lines, one of which reflects the following results Sales Variable expenses Contribution margin Fixed expenses Net loss $211000
Question 1 A company has three product lines, one of which reflects the following results Sales Variable expenses Contribution margin Fixed expenses Net loss $211000 119000 92000 130000 $ (38000) 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 O increase by $14000 O increase by $3800o. O decrease by $92000. O decrease by $14000
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