Corn Crunchers has three product lines.Its only unprofitable line is Corn Nuts, the results of which appear below for 2020: $\begin{array}{ll}
\text { Sales } & \$ 350,000 \
\text { Variable expenses } & 230,000 \
\text { Fixed expenses } & \underline{180,000} \
\text { Net loss } & \$(60,000)
\end{array}$
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

Question

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The Answer of Corn Crunchers has three product lines.Its only unprofitable line is Corn Nuts, the results of which appear below for 2020: $\begin{array}{ll}
\text { Sales } & \$ 350,000 \
\text { Variable expenses } & 230,000 \
\text { Fixed expenses } & \underline{180,000} \
\text { Net loss } & \$(60,000)
\end{array}$
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

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