Problem:
A company has three product lines, one of which reflects the following results: Sales $215,000 - Variable expenses $125,000 = Contribution Margin $90,000 - Fixed Costs Expenses $140,000 = Net Loss $(50,000). 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 be...