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Sales Less variable costs Contribution margin Less fixed costs Income (loss) from operations $660,000 $320,000 540,000 220,000 $ 120,000 $100,000 145,000 40,000 $ 25,000) $ 60,000 Management is considering the discontinuance of the manufacture and sale of Produ at the beginning of the current year. The discontinuance would have no effect on the fixed costs and expenses or on the sales of Product U. What is the amount of change net income for the current year that will result from the discontinuance of Product T? a. $120,000 increase b. $250,000 increase C. $25,000 decrease d. $120,000 decrease Paragraph - BIER MacBook Air A business is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15 per unit. The unit cost for the business to make the par is $20, including fixed costs, and $12, not including fixed costs. If 30,000 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it? a. $150,000 cost increase b. $ 90,000 cost decrease C. $150,000 cost increase d. $ 90,000 cost increase Paragraph - BIE N > T AY UNIVERSITY DUBAI P Flag question A business is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15 per unit. The unit cost for the business to make the part is $20, including fixed costs, and $12, not including fixed costs. If 30,000 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it? a $150,000 cost increase b. $ 90,000 cost decrease c. $150,000 cost increase d. $ 90,000 cost increase Paragraph - B E D > MacBook Air