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The condensed income statement for a Fletcher Inc. for the past year is as follows: Product F G H Total Sales $300,000 $210,000 $340,000 $850,000

The condensed income statement for a Fletcher Inc. for the past year is as follows:

Product
F G H Total
Sales $300,000 $210,000 $340,000 $850,000
Costs:
Variable costs $(180,000) $(180,000) $(220,000) $(580,000)
Fixed costs (50,000) (50,000) (40,000) (140,000)
Total costs $(230,000) $(230,000) $(260,000) $(720,000)
Income (loss) $70,000 $(20,000) $80,000 $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. The amount of change in profit for the current year that will result from the discontinuance of Product G is a

a.$20,000 increase

b.$20,000 decrease

c.$30,000 decrease

d.$30,000 increase

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