Y Company has three product lines. Its only unprofitable line is Kanye East, the results of which appear below for 2022:

Sales $1,370,000

Variable expenses 890,000

Fixed expenses 600,000

Net loss $ (120,000)

If this product line is eliminated, 30% of the fixed expenses can be eliminated. How much are the relevant costs in the decision to eliminate this product line?

Select one:

a. $1,070,000

b. $180,000

c. $1,310,000

d. $1,490,000

Clear my choice