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 $40000.
B) decrease by $90000.
C) decrease by $12000.
D) increase by $12000.
Correct Answer:
Verified
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