Answer:
Courtney
Discontinued Product Line:
The overall income will increase by $10,000 ($4,000 + 6,000).
Step-by-step explanation:
In a decision to discontinue a product line, the relevant costs to consider are the avoidable costs. These are costs that will no longer be incurred when a line is discontinued. They are relevant to the decision, unlike costs that will not change as a result of the discontinued product line.
Incremental revenue that will be resulting from a discontinued product line is also relevant. For example, the additional contribution margin of $6,000 is relevant to the decision of whether to continue or discontinue the product line, all other things remaining equal.