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The condensed income statement for Apple Inc. for the past year is as follows: Product Series 3 Series 4 Series 5 Total Sales $ 300.000
The condensed income statement for Apple Inc. for the past year is as follows: Product Series 3 Series 4 Series 5 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) S(260,000 $(720,000) Income (loss) $ 70,000 S (20,000) $ 80,000 $ 130,000 Management is considering the discontinuance of the manufacture and sale of Apple Watch Series 4 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 Apple Watch Series 3 and Apple Watch Series 5. The amount of change in profit for the current year that will result from the discontinuance of Apple Watch Series 4 is a O $20,000 increase O $20,000 decrease O $30.000 decrease O $30,000 increase
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