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Help doing 29-30 The condensed income statement for a business for the past year is as follows: Management is considering the discontinuance of the manufacture
Help doing 29-30 The condensed income statement for a business for the past year is as follows: Management is considering the discontinuance of the manufacture and sale of product T 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 Product U. What is the amount of change income for the current year that will result from the discontinuance of Product T? $120, 000 increase $250, 000 increase $25, 000 decrease $120, 000 decrease A business is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15 per unit. The unit cost for the business to make the part is $2 including fixed costs, and $12, not including fixed costs. If 30, 000 units of the part are normal purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing i $ 150, 000 cost increase $90, 000 cost decrease $150, 000 cost increase $90, 000 cost increase
Help doing 29-30
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