Management is considering the discontinuance of the manufacture and sale of Product A 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 B. What is the amount of change in net income for the current year that will result from the discontinuance of Product A?

A. $80,000 decrease

B. $ 80,000 increase

C. $45,000 increase

D. $45,000 decrease

The condensed income statement for a business for the past year is as follows: Product A B Sales $800,000 $550,000 Less variable costs 720,000 430,000 Contribution margin $ 80,000 $120,000 Less fixed costs 125,000 45,000 Income (loss) from operations S(45,000) $ 75,000 Management is considering the discontinuance of the manufacture and sale of Product A 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 B. What is the amount of change in net income for the current year that will result from the discontinuance of Product A