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A condensed income statement for Gilbert, Incorporated follows: Products F G H Total Sales (total) $290,000 $189,000 $410,000 $889,000 Total Unit-Level Costs (156,000) (161,800) (218,000)
A condensed income statement for Gilbert, Incorporated follows:
Products | F | G | H | Total |
---|---|---|---|---|
Sales (total) | $290,000 | $189,000 | $410,000 | $889,000 |
Total Unit-Level Costs | (156,000) | (161,800) | (218,000) | (535,800) |
Contribution Margin | 134,000 | 27,200 | 192,000 | 353,200 |
Company-Wide Facility-Level Costs | (26,800) | (31,800) | (58,000) | (116,600) |
Income (Loss) | $107,200 | $(4,600) | $134,000 | $236,600 |
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
$4,600 increase
$27,200 decrease
$31,800 increase
$4,600 decrease
Please show the steps as I got this wrong and keep getting the wrong answer.
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