Corn Crunchers Has Three Product Lines If This Product Line Is Eliminated, 30% of the Fixed

question 102

Multiple Choice

Corn Crunchers has three product lines.Its only unprofitable line is Corn Nuts, the results of which appear below for 2016: $$\begin{array} { l r } \text { Sales } & \$ 350,000 \\\text { Variable expenses } & 230,000 \\\text { Fixed expenses } & \underline { 180,000 } \\\text { Net loss } & \$ ( 60,000 ) \end{array}$$ If this product line is eliminated, 30% of the fixed expenses can be eliminated.How much are the relevant costs in the decision to eliminate this product line?

• A)$54,000
• B)$410,000
• C)$335,000
• D)$284,000

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