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 $120,000 $220,000 25,000 Contribution Margin Less Fixed Cost Income (Loss) From Operation $55,000 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 $120,000 $220,000 25,000 Contribution Margin Less Fixed Cost Income (Loss) From Operation $55,000 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

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
See similar textbooks
icon
Related questions
Question
100%

Need answer the question

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 $120,000 $220,000 25,000 Contribution Margin Less Fixed Cost Income (Loss) From Operation $55,000 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 $120,000 $220,000 25,000 Contribution Margin Less Fixed Cost Income (Loss) From Operation $55,000 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
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS