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The condensed income statement for a business for the past year is presented as follows: Sales Less variable costs Contribution margin Less fixed costs Income
The condensed income statement for a business for the past year is presented as follows: Sales Less variable costs Contribution margin Less fixed costs Income (loss) from oper. F $300,000 180,000 $120,000 50,000 $ 70,000 Product G $210,000 190,000 $ 20,000 50,000 $ (30,000) H $340,000 220,000 $120,000 40,000 $ 80,000 Total $850,000 590,000 $260,000 140,000 $120,000 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? $20,000 increase $30,000 increase $20,000 decrease $30,000 decrease
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