answer in text from with all workings no AI no copy paste Marigold Machines has four product lines, one of which reflects the following results:Sales$221000Variable costs118000Contribution margin103000Fixed costs118000Net loss$(15000)43If this product line is eliminated, 40% of the fixed costs can be eliminated and the other 60% will be allocated to other product lines. Ifmanagement decides to eliminate this product line, what will happen to the company's net income?O It will increase by $15000.It will increase by $47200.It will decrease by $40800.O It will decrease by $55800.

Answer = option(d) It will decrease by $55,800Step 1:Given:Sales = $221,000Variable costs =…

Answered: Marigold Machines has four product…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9EB: Baghdad Company produces a single product. They have recently received the result of a market survey...

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