Question: 41. Management is considering dropping product line A. If it is discontinued. (1) $18,000 of its fixed costs are DTFC and (2) the selling price

 41. Management is considering dropping product line A. If it is

41. Management is considering dropping product line A. If it is discontinued. (1) $18,000 of its fixed costs are DTFC and (2) the selling price of Product B would increase by 10%. The discontinuation of product line A would: a. Increase net income by $2,600 b. Decrease net income by $20,000. c. Increase net income by $6,500. d. Decrease net income by $2,000. e. Increase net income by $3,000. 41. Management is considering dropping product line A. If it is discontinued. (1) $18,000 of its fixed costs are DTFC and (2) the selling price of Product B would increase by 10%. The discontinuation of product line A would: a. Increase net income by $2,600 b. Decrease net income by $20,000. c. Increase net income by $6,500. d. Decrease net income by $2,000. e. Increase net income by $3,000

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