Tremaine Inc. has three product lines: A, B, and C. B Sales $50,000 $85,000 $90,000 $225,000 Variable costs 30,000 |_ 30,000 44,000 104.000 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