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...

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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,







A total net income will increase by the amount of the product line's fixed costs.







B the contribution margin of the product line will indicate the net income increase or decrease.







C the company's total fixed costs will decrease.







D total net income will decrease by the amount of the product line's fixed costs.

Answered Same DayDec 24, 2021

Answer To: A company is considering eliminating a product line. The fixed costs currently allocated to the...

David answered on Dec 24 2021
122 Votes
A company is considering eliminating a product line. The fixed costs currently
allocated to the pr
oduct line will be allocated to other product lines upon
discontinuance. If the product line is discontinued,
a total net income will increase by the amount of the product line's fixed costs.
B the contribution margin of the product line will indicate the net income increase
or...
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