Question: urgrnt 31. Management is considering dropping product line B. If it is discontinued, (1) $4,000 of its fixed costs are unavoidable fixed costs (common FC)
31. Management is considering dropping product line B. If it is discontinued, (1) $4,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the sales of Product A would increase by 70%. The discontinuation of product line B would: a. Decrease net income by $5,000 b. Decrease net income by $10,000. c. Decrease net income by $15,000. d. Decrease net income by $20,000. 31. Management is considering dropping product line B. If it is discontinued, (1) $4,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the sales of Product A would increase by 70%. The discontinuation of product line B would: a. Decrease net income by $5,000 b. Decrease net income by $10,000. c. Decrease net income by $15,000. d. Decrease net income by $20,000
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