Question: please solve in 10min i will upvote QUESTION 46 A company has three product lines, one of which reflects the following results: Sales HK$215,000 125,000

please solve in 10min i will upvote QUESTION 46 A company hasplease solve in 10min i will upvote

QUESTION 46 A company has three product lines, one of which reflects the following results: Sales HK$215,000 125,000 Variable expenses Contribution margin. 90,000 130,000 Fixed expenses Net loss HK$ (40,000) 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 O increase by HK$40,000. O decrease by HK$90,000. O decrease by HK$12,000. O increase by HK$12,000. 2 points Save

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!