USE THE FOLLOWING INFORMATION FOR QUESTIONS 15-17 Carlton Products has three product lines: A, B, and...

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USE THE FOLLOWING INFORMATION FOR QUESTIONS 15-17 Carlton Products has three product lines: A, B, and C. A B C Total Sales $500,000 $550,000 $700,000 $1,750,000 Variable costs 280,000 420,000 300,000 1,000,000 Contribution margin 220,000 130,000 400,000 750,000 Fixed costs 100,000 140,000 150,000 390,000 Net income $120,000 $(10,000) $250,000 $ 360.000 15. Management is considering dropping product line B. If it is discontinued, 30% of its fixed costs are common fixed costs. The discontinuation of product line B would: a. decrease net income $88,000. b. decrease net income $68,000. decrease net income $32,000. d. decrease net income $12,000. 16. Management is considering dropping product line B. If it is discontinued, (1) 40% of its fixed costs are DTFC and (2) the sales of Product C would increase by 20%. The discontinuation of product line B would: a. Increase net income by $6,000 b. Increase net income by $66,000. C. Increase net income by $16,000. d. Increase net income by $26,000. 17. Management is considering dropping product line B. If it is discontinued, (1) 25% of its fixed costs are common fixed costs and (2) the selling price of Product A would increase by 10%. The discontinuation of product line B would: a. Increase net income by $15,000 b. Increase net income by $25,000. C. Increase net income by $20,000. d. Increase net income by $30,000. USE THE FOLLOWING INFORMATION FOR QUESTIONS 15-17 Carlton Products has three product lines: A, B, and C. A B C Total Sales $500,000 $550,000 $700,000 $1,750,000 Variable costs 280,000 420,000 300,000 1,000,000 Contribution margin 220,000 130,000 400,000 750,000 Fixed costs 100,000 140,000 150,000 390,000 Net income $120,000 $(10,000) $250,000 $ 360.000 15. Management is considering dropping product line B. If it is discontinued, 30% of its fixed costs are common fixed costs. The discontinuation of product line B would: a. decrease net income $88,000. b. decrease net income $68,000. decrease net income $32,000. d. decrease net income $12,000. 16. Management is considering dropping product line B. If it is discontinued, (1) 40% of its fixed costs are DTFC and (2) the sales of Product C would increase by 20%. The discontinuation of product line B would: a. Increase net income by $6,000 b. Increase net income by $66,000. C. Increase net income by $16,000. d. Increase net income by $26,000. 17. Management is considering dropping product line B. If it is discontinued, (1) 25% of its fixed costs are common fixed costs and (2) the selling price of Product A would increase by 10%. The discontinuation of product line B would: a. Increase net income by $15,000 b. Increase net income by $25,000. C. Increase net income by $20,000. d. Increase net income by $30,000.