The condensed income statement for a Hayden corp. For the past year Product T. U Sales: $680,000. $320,000 Costs: Variable costs: 540,000. 220,000 Fixed costs: 145,000. 40,000 Total costs: $685,000 . $260,000 Income loss: (f5,000) $60,000 Mangement is considering the discontinuance of the manufacture and sale of product T at the beginning of the current year. The discontinuance will have no effect on the total fixed costs and expenses or the sales of product U. What is the amount of change in net income for the current year that will result from the discontinuance of product T?
The condensed income statement for a Hayden corp. For the past year
Product
T. U
Sales: $680,000. $320,000
Costs:
Variable costs: 540,000. 220,000
Fixed costs: 145,000. 40,000
Total costs: $685,000 . $260,000
Income loss: (f5,000) $60,000
Mangement is considering the discontinuance of the manufacture and sale of product T at the beginning of the current year. The discontinuance will have no effect on the total fixed costs and expenses or the sales of product U.
What is the amount of change in net income for the current year that will result from the discontinuance of product T?
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