Multiple Choice Practice Questions - Differential Analysis da plibong to ainu 000,02 101 0x0 1. The condensed income statement for a Fletcher Inc. for the past year is as follows: Sales Costs: Variable costs Fixed costs Total costs Income (loss) F $300,000 Product G $210,000 H $340,000 $180,000 $180,000 $220,000 50,000 50,000 40,000 $230,000 $230,000 $260,000 $70,000 $(20,000) $80,000 Total $850,000 $580,000 140,000 $720,000 $130,000 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. $20,000 increase b. $30,000 increase c. $20,000 decrease d. $30,000 decrease evil subiseron 0003 (2

Multiple Choice Practice Questions - Differential Analysis 1. The condensed income statement for a Fletcher Inc. for the past year is 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. $20,000 increase b. $30,000 increase c. $20,000 decrease d. $30,000 decrease