Homework Help is Here – Start Your Trial Now!
Business
Accounting
The condensed income statement for a business for the past year is presented as follows: Product F G H Total Sales $200,000 Less Variable Cost $180,000 120,000 160,000 $80,000 $20,000 $320,000 $700,000 200,000 480,000 $220,000 25,000 Contribution Margin Less Fixed Cost Income (Loss) From Operation $55,000 $120,000 30,000 40,000 95,000 ($10,000) $80,000 $125,000 Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H. What is the amount of change of in net income for the current year that will result from the discontinuance of Product G? a. $10,000 decrease b. $20,000 increase c. $10,000 increase d. $20,000 decrease e. none of the listed responses is the correct answer

The condensed income statement for a business for the past year is presented as follows: Product F G H Total Sales $200,000 Less Variable Cost $180,000 120,000 160,000 $80,000 $20,000 $320,000 $700,000 200,000 480,000 $220,000 25,000 Contribution Margin Less Fixed Cost Income (Loss) From Operation $55,000 $120,000 30,000 40,000 95,000 ($10,000) $80,000 $125,000 Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H. What is the amount of change of in net income for the current year that will result from the discontinuance of Product G? a. $10,000 decrease b. $20,000 increase c. $10,000 increase d. $20,000 decrease e. none of the listed responses is the correct answer

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

General accounting

The condensed income statement for a business for the past year is presented as follows: Product F G H Total Sales $200,000 Less Variable Cost $180,000 120,000 160,000 $80,000 $20,000 $320,000 $700,000 200,000 480,000 $220,000 25,000 Contribution Margin Less Fixed Cost Income (Loss) From Operation $55,000 $120,000 30,000 40,000 95,000 ($10,000) $80,000 $125,000 Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H. What is the amount of change of in net income for the current year that will result from the discontinuance of Product G? a. $10,000 decrease b. $20,000 increase c. $10,000 increase d. $20,000 decrease e. none of the listed responses is the correct answer
Transcribed Image Text:The condensed income statement for a business for the past year is presented as follows: Product F G H Total Sales $200,000 Less Variable Cost $180,000 120,000 160,000 $80,000 $20,000 $320,000 $700,000 200,000 480,000 $220,000 25,000 Contribution Margin Less Fixed Cost Income (Loss) From Operation $55,000 $120,000 30,000 40,000 95,000 ($10,000) $80,000 $125,000 Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H. What is the amount of change of in net income for the current year that will result from the discontinuance of Product G? a. $10,000 decrease b. $20,000 increase c. $10,000 increase d. $20,000 decrease e. none of the listed responses is the correct answer
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS