Sales $214000 Variable expenses 121000 Contribution margin 93000 Fixed expenses 130000 Net loss $(37000) If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will increase by $37000. increase by $15000. decrease by $15000. decrease by $93000.
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$$ 130000 \times 0.60 = 78000 $$ Show more…
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