Answer:
a. there will be a positive change in income if the product line is dropped
Explanation:
The decision regarding whether a product line should be continued or dropped should take into consideration all the relevant costs and net income before and after dropping such a product line.
While considering costs, unavoidable fixed costs need not be considered as those would be incurred irrespective of the product line getting dropped or continued.
A Product line should be dropped only when it results into a positive change in the net income which means, the net income after dropping such a product line should be more than the net income before dropping.
