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The condensed income statement for a Fletcher Inc. for the past year is as follows: Sales Costs: Variable costs Fixed costs Total costs Income (loss) F $300,000 Product G $210,000 H $340,000 $180,000 $180,000 $220,000 50,000 50,000 40,000 $230,000 $230,000 $260,000 $ 70,000 $(20,000) $ 80,000 Total $850,000 $580,000 140,000 $720,000 $130,000 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 in net income for the current year that will result from the discontinuance of Product G? K a. $30,000 decrease b. $30,000 increase c. $20,000 decrease d. $20,000 increase

The condensed income statement for a Fletcher Inc. for the past year is as follows: 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 in net income for the current year that will result from the discontinuance of Product G? 1. 530.000 decrease b. 510,000 increase c. 520.000 decrease 4. $20,000 increase