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The forecast income statement for Newsome, Inc. for next year is as follows: F G Total Sales Revenue $300,000 $230,000 $530,000 Total Costs $290,000 $310,000

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

F G Total
Sales Revenue $300,000 $230,000 $530,000
Total Costs $290,000 $310,000 $600,000
Income (loss) $10,000 ($80,000) ($70,000)

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 estimated variable costs are 90% of its sales revenue. 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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