3D printing has two product service lines, one of which reflects the following results:
Sales $140,000
Variable costs 20,000
Fixed costs 140,000
Net loss $(20,000)
If this product line is eliminated, the fixed costs will be allocated to other product service lines. If management decides to eliminate this product line, what will happen to the company's net income?
Select one:
a.
It will decrease by $120,000.
b.
It will increase by $120,000.
c.
It will decrease by $100,000.
d.
It will decrease by $130,000.