The condensed income statement for a business for the past year is presented as follows: ? ?
Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year.The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H.What is the amount of change in net income for the current year that will result from the discontinuance of Product G?
A) $30,000 decrease
B) $30,000 increase
C) $20,000 decrease
D) $20,000 increase
Correct Answer:
Verified
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