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

Question

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

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 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

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