None The condensed income statement for a business for the past year is presented as follows:ProductFGHTotalSales$200,000 $180,000 $320,000 $700,000Less Variable CostContribution MarginLess Fixed Cost120,000 160,000 200,000 480,000$80,000 $20,000 $120,000 $220,00025,000 30,000 40,000 95,000Income (Loss) From Operation $55,000 ($10,000) $80,000 $125,000Management is considering the discontinuance of the manufacture and sale of Product Gat the beginning of the current year. The discontinuance would have no effect on the totalfixed 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 fromthe discontinuance of Product G?a. $10,000 decreaseb. $20,000 increasec. $10,000 increased. $20,000 decreasee. none of the listed responses is the correct answer

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Answered: The condensed income statement for a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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