Question
the condensed income statement of hayden corp for the past year is as follows. product T U 680000 320000 Sales Costs: Variable Costs 540000 220000
the condensed income statement of hayden corp for the past year is as follows. product T U 680000 320000 Sales Costs: Variable Costs 540000 220000 Fixed Costs 145000 40000 Total Costs 685000 260000 Income(Loss) $(5000) 60000 Management is considering the discontinuance of the manufacture and sale of Product T at the beginning of the current year. If management discontinues Product T, the fixed allocated to Product T cannot be avoided. What is the amount of change in net income for the current year that that will result from the discontinuance of Product T?
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