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The condensed income statement for a business for the past year is as follows Product White Black $550,ooo sales $750,000 Less variable 460,000 380,000 cost
The condensed income statement for a business for the past year is as follows Product White Black $550,ooo sales $750,000 Less variable 460,000 380,000 cost $170,000 Contribution | $350,000 margin less fixed 240,000 100,000 costs S140,000 $110,000 Income loss from operation, (Management is considering the discontinuance of the manufacture and sale of Black 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 White. What is th amount of change in net income for the current year that will result from the discontinuance of Black?)
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