Tremaine Inc. has three product lines: A, B, and C. Total Sales $50,000 $85,000 $90,000 $225,000 30,000 30,000 44,000 104,000 Variable costs Contribution margin 20,000 55,000 46,000 121,000 Fixed costs 23,000 25,000 18,000 66,000 Net income $ (3,000) $30,000 $28.000 $ 55,000 28. Management is considering dropping product line A. If it is discontinued, $18,000 of its fixed costs are DTFC & can be avoided. The discontinuation of product line A would: a. increase Tremaine net income by $13,000. b. increase Tremaine net income by $21,000. c. decrease Tremaine net income by $2,000. d. increase Tremaine net income by $2,500. 29. Management is considering dropping product line A. If it is discontinued, (1) all of its fixed costs are common FC & cannot be avoided and (2) sales of Product B will increase by 60%. The discontinuation of product line A would: a. increase Tremaine net income by $13,000. b. increase Tremaine net income by $21,000. c. decrease Tremaine net income by $2,000. d. increase Tremaine net income by $2,500. 30. Management is considering dropping product line A. If it is discontinued, (1) all of its fixed costs are common FC & cannot be avoided and (2) the selling price of Product C will increase by 25%. The discontinuation of product line A would a. increase Tremaine net income by $13.000. b. increase Tremaine net income by $21,000. c. decrease Tremaine net income by $2,000. d. increase Tremaine net income by $2,500