Acompany has three product lines, one of which reflects the following results:

sales $215,000

variable expenses 125,000

contribution margin 90,000

fixed expenses 130,000

net loss $ (40,000)

if this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. if management decides to eliminate this product line, the company's net income will

a. increase by $40,000.

b. decrease by $90,000.

c. decrease by $12,000.

d. increase by $12,000.

On december 31, 2016, the decarreau, andrew, and bui partnership had the following fiscal year-end balance sheet: cash $10,000accounts receivable $20,000inventory $25,000plant assets - net $30,000loan to decarreau $18,000total assets $103,000accounts payable $14,000loan from bui $15,000decarreaua, capital (20%) $32,000andrew, capital (10%) $23,000bui, capital (70%) $19,000total liab./equity $103,000the percentages shown are the residual profit and loss sharing ratios. the partners dissolved the partnership on january 1, 2017, and began the liquidation process. during july the following events occurred: * receivables of $18,000 were collected.* all inventory was sold for $15,000.*all available cash was distributed on january 31, except for$8,000 that was set aside for contingent expenses.the book value of the partnership equity (i.e., total equity of the partners) on december 31, 2016 isa. $58,000b. $71,000c. $66,000d. $81,000