Bingham Company manufactures and sells a product Product J. Results for last year for the manufacture and sale of Product are as follows: $1,600,000 Sales: 10,000 units at $160 each Less costs: Variable production costs Sales commissions: 15% of sales Salaries of line supervisors Traceable fixed advertising expense Fixed general factory overhead (allocated to products on the basis of square feet occupied) Total costs Net loss 960,000 240,000 195,000 180,000 1170,000 1.745.000 $ (1145.000) Bingham Company anticipates no change in the operating result for Product in the foreseeable future if the product is produced. Bingham is reexamining all of its products and is trying to decide whether to discontinue the manufacture and sale of Product J. The company's total fixed factory overhead cost would not be affected by this decision Assume that discontinuing the manufacture and sale of Product will not affect the sale of other products. If the company discontinues Product the change in annual net income due to this decision will be a: $25,000 decrease. $145,000 increase. $170.000 decrease. $315.000 decrease. Assume that discontinuing Product I would result in a $30,000 increase in the contribution margin of other product lines. If Bingham chooses to discontinue Product J, then the change in net income next year due to this action will be a: $145,000 increase. $145.000 decrease. $5,000 increase. $120,000 increase