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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

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