Question: Please write out correct answer and whether its A, B, C or D. Thank you. The condensed income statement for a Featherweight Shoes is as
The condensed income statement for a Featherweight Shoes is as follows: Product A B Sales $680.000 $320,000 Costs: Variable costs $540,000 $ 220,000 Fixed costs 145,000 40.000 Total costs $685.000 $260.000 Income (loss) $_(5,000) $ 60,000 The company is considering the discontinuance of the of Product A The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Product B. Compute the change in net income that would result from the discontinuance of Product A. $140,000 decrease O $5,000 decrease O $140,000 increase $5,000 increase
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