Sandhill company has three product lines. Management is concerned about the Jupiter product line, which experienced an operating loss of $ 38,800 last year as a result of sales of $225,000, variable expenses of $135,000, and fixed expenses of $128,800. If this product line is eliminated, 60% of fixed expenses can be eliminated, but the remaining 40% will have to be allocated to other product lines.

 If management decides to eliminate this product line, what will be the company's net income?

Answer rating: 100% (QA)

If this product line will eliminate then sales variable costs and a part of ... View the full answer