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The condensed income statement for Cabinets for the past year is presented as follows: Cabinets Sales $220,000 Less variable costs 190,000 Contribution margin $ 30,000
The condensed income statement for Cabinets for the past year is presented as follows: Cabinets Sales $220,000 Less variable costs 190,000 Contribution margin $ 30,000 Less fixed costs: Direct 10,000 Indirect (Allocated) 40.000 Income (loss) from operations $(20,000) Management is considering the discontinuance of the manufacture and sale of Cabinets discontinuance would have no effect on the total fixed costs and expenses or on the sale What is the amount of change in net income for the current year that will result from Multiple Choice Management is considering the discontinuance of the manufacture and sale of Cabinets 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 other products produced by the company What is the amount of change in net income for the current year that will result from the discontinuance of Cabinets? Multiple Choice $30,000 decrease $20,000 increase $30,000 Increase * Search Positive $36,400 Negative $55,200 Negative $248,000 Positive $847130 Positive $55,200
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