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Question 35 A company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin $244000 141000 103000 130000 $
Question 35 A company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin $244000 141000 103000 130000 $ (27000) Fixed expenses Net loss 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 $27000. O decrease by $103000. o decrease by $25000. o increase by $25000
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