Assume that discontinuing the manufacture and sale of Product J will not affect the sale of other products.If the company discontinues Product J,the change in annual net income due to this decision will be a:

Question

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The change in annual net income is a $25,000 decrease, which suggests that discontinuing Product J will result in losing its contribution margin of $25,000, assuming fixed costs remain unchanged.

Assume That Discontinuing the Manufacture and Sale of Product J