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

Question

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

Quizplus · Accepted Answer

The Answer of 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

The Condensed Income Statement for a Business for the Past