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A condensed income statement for Gilbert, Inc. follows: (amounts are shown in thousands) Products F G H Total Sales (total) $ 250 $ 185.0 $
A condensed income statement for Gilbert, Inc. follows: (amounts are shown in thousands)
Products | F | G | H | Total | ||||||||||||
Sales (total) | $ | 250 | $ | 185.0 | $ | 370 | $ | 805.0 | ||||||||
Total Unit-level Costs | (140 | ) | (161.0 | ) | (210 | ) | (511.0 | ) | ||||||||
Contribution Margin | 110 | 24.0 | 160 | 294.0 | ||||||||||||
Company-wide Facility-Level Costs | (26.0 | ) | (31.0 | ) | (50 | ) | (107.0 | ) | ||||||||
Income (Loss) | $ | 84.0 | $ | (7.0 | ) | $ | 110 | $ | 187.0 | |||||||
Gilbert's management is considering whether to eliminate manufacturing product G at the beginning of the next year. The elimination will have no effect on the sales or unit-level costs of products F and H. The change in income that would result from eliminating product G is
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