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Sheffield Machines has four product lines, one of which reflects the following results: Sales $225000 Variable costs 127000 Contribution margin 980001 Fixed costs 127000
Sheffield Machines has four product lines, one of which reflects the following results: Sales $225000 Variable costs 127000 Contribution margin 980001 Fixed costs 127000 Net loss $29000) If this product line is eliminated, 45% of the fixed costs can be eliminated and the other 55% will be allocated to other product lines. If t management decides to eliminate this product line, what will happen to the company's net income? It will decrease by $11850 O it will increase by $57150 Ot will decrease by 540850 It will increase by $29000
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