Question 30 Jambalaya Company is considering closing one of its product lines. Current data on the product line is as follows: Sales Revenue $29,400 Variable Costs 22,344 Direct Avoidable Fixed Costs* 8,232 Indirect Allocated Fixed Costs** 5,880 Net Income (Loss) on the Product Line ($7,056) *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. In addition, if Jambalaya closes the product line, Jambalaya can sublease its production facility to another company and earn sublease revenue of $2,900 per ye Assume that Jambalaya decides to discontinue this product line. By how much will overall company net income change? Company net income will DECREASE by $7,056 Company net income will DECREASE by $4,076 Company net income will INCREASE by $4,076 Company net income will INCREASE by $7,056