A company is considering eliminating a product line. The fixed costs currently a

Question

A company is considering eliminating a product line. The fixed costs currently allocated to the product line will be allocated to other product lines upon discontinuance. If the product line is discontinued, the contribution margin of the product line will indicate the net income increase or decrease. total net income will increase by the amount of the product line's fixed cost s. total net income will decrease by the amount of the product line's fixed costs. the company's total fixed costs will decrease.

Explanation / Answer

1st option the contribution margin of the product line will indicate the net income increase or decrease

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