Corn Crunchers has three product lines.Its only unprofitable line is Corn Nuts, the results of which appear below for 2012: 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

Corn Crunchers has three product lines.Its only unprofitable line is Corn Nuts, the results of which appear below for 2012:  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

Quizplus · Accepted Answer

The Answer of Corn Crunchers has three product lines.Its only unprofitable line is Corn Nuts, the results of which appear below for 2012:  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