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The forecast income statement for Moscone, Inc. for next year is as follows: F G Total Sales Revenue $300,000 $190,000 $490,000 Total costs $290,000 $230,000

The forecast income statement for Moscone, Inc. for next year is as follows:

F

G

Total

Sales Revenue

$300,000

$190,000

$490,000

Total costs

$290,000

$230,000

$520,000

Income (loss)

$ 10,000

($40,000)

($30,000)

Management is considering ending the production and sale of Product G at the beginning of next year. Ending Product G will have no effect on total fixed costs or on the sales of Product F. Product Gs fixed costs are about 14% of its total costs. Calculate the estimated amount of increase or decrease in net income next year that will result from ending production and sale of Product G.

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