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Sheffield Crunchers has three product lines. Its only unprofitable line is Sheffield Nuts. The results for 2022 are as follows: Sales $349000 Variable costs 229000

Sheffield Crunchers has three product lines. Its only unprofitable line is Sheffield Nuts. The results for 2022 are as follows:

Sales $349000
Variable costs 229000
Fixed costs 170000
Net loss $(50000)

If this product line is eliminated, 25% of the fixed costs can be eliminated. How much are the relevant costs in the decision to eliminate this product line?

$399000

$271500

$42500

$316250

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