Question
Tisdale Company is considering a plan to discontinue their widgets line, which produces revenues of $250,000 and costs of $400,000 (75% variable, 25% fixed). The
Tisdale Company is considering a plan to discontinue their widgets line, which produces revenues of $250,000 and costs of $400,000 (75% variable, 25% fixed). The effect on net income of no longer manufacturing widgets is a:
| A. | $50,000 increase. | |
| B. | $50,000 decrease. | |
| C. | $150,000 increase. | |
| D. | $0 |
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Corporate Financial Accounting
Authors: Carl S Warren, Jeff Jones
16th Edition
0357510380, 978-0357510384
