Cecil Company presently has three product lines: papers, stamps,


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Cecil Company presently has three product lines: papers, stamps, and computer ribbons. The company is profitable overall but is considering discontinuing the stamp line because of losses from that line. Current data on the stamp line is as follows: Sales revenue- $27,000 variable costs- $19,000 direct avoidable fixed costs- $5,000 indirect allocated fixed costs- $6,000 Net income (loss) on stamp line- $(3,000) Given this info, if Cecil discontinues the stamp line, overall net income for the company would: A. Increase by $3,000 B. decrease by $3,000 C. Decrease by $6,000 D. Decrease by $8,000 E. None of the above

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