#2: Continue or Discontinue / Keep or Eliminate (2.5 points) The condensed income statement for Avalon Co. for the past year is as follows: Product Y $600 $950,0 820,0 $130,0 Sales Less variable costs 490 $110 Contribution margin Less fixed costs 160,0 55 $(30,000 55,000 Income (loss) from operations Management is considering the discontinuance of the manufacture and sale of Product X 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 Y. Should Avalon Co. discontinue Product X? What is the incremental net income or net loss for the current year that will result from the elimination of Product X