A company has three product lines, one of which reflects the following results: If this product line is eliminated, 60% of the fixed expenses can 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
A) increase by $40,000.
B) decrease by $90,000.
C) decrease by $12,000.
D) increase by $12,000.
Correct Answer:
Verified
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