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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
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?
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
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