Jake Company has three product lines, one of which has the following results: Sales                                              P215,000 Variable expenses                           125,000 Contribution margin                            90,000 Fixed expenses                                130,000 Net loss                                          P (40,000) If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines.  If management decides to eliminate this product line, how much will the company's net income or loss be?

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Q: please step by step solution.

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