Sardine Kitchen Company produces three sizes of crock pots: small, medium, and large. A condensed segmented income statement for a recent period follows:Large Medium Small Total Sales$200,000$200,000$105,000$505,000Variable expenses125,000110,000 65,000300,000Contribution margin75,00090,00040,000205,000Fixed expenses 55,000 55,000 47,000157,000Net income (loss)$ 20,000$ 35,000 $(7,000)$ 48,000Assume none of the fixed expenses for the small size crock pot are avoidable. What will be total net income if the line is dropped? Select one:a. $47,000b. $8,000c. $55,000d. $13,000
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