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 net income for the current year that will result from the discontinuance Of Product G?

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Sales Less variable costs Contribution margin Less fixed costs Income (loss) from oper. E $300,000 180,000 $120,000 50,000 $ 70,000 Product G $210,000 190,000 $ 20,000 50,000 $(30,000) H $340,000 220,000 $120,000 40,000 $ 80,000 Total $850,000 590,000 $260,000 _140,000 $120,000 Sales Less variable costs Contribution margin Less fixed costs Income (loss) from oper. E $300,000 180,000 $120,000 50,000 $ 70,000 Product G $210,000 190,000 $ 20,000 50,000 $(30,000) H $340,000 220,000 $120,000 40,000 $ 80,000 Total $850,000 590,000 $260,000 _140,000 $120,000

Answer rating: 100% (QA)

Differential Analysis Continue Product G alt 1 or Discontinue ... View the full answer