The condensed income statement for Hayden Corp. for the past year is as follows: Management is considering the discontinuance of the manufacture and sale of Product T 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 Product U. The amount of change in profit for the current year that will result from the discontinuance of Product T is a
A)$140,000 increase
B)$5,000 increase
C)$5,000 decrease
D)$140,000 decrease

Question

The condensed income statement for Hayden Corp. for the past year is as follows:  Management is considering the discontinuance of the manufacture and sale of Product T 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 Product U. The amount of change in profit for the current year that will result from the discontinuance of Product T is a
A)$140,000 increase 
B)$5,000 increase 
C)$5,000 decrease 
D)$140,000 decrease

Quizplus · Accepted Answer

The Answer of The condensed income statement for Hayden Corp. for the past year is as follows:  Management is considering the discontinuance of the manufacture and sale of Product T 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 Product U. The amount of change in profit for the current year that will result from the discontinuance of Product T is a
A)$140,000 increase 
B)$5,000 increase 
C)$5,000 decrease 
D)$140,000 decrease

The Condensed Income Statement for Hayden Corp