The condensed income statement for a Fletcher Inc. for the past year is as follows: Product FGHTotalSales$300,000 $210,000 $340,000 $850,000 Costs: Variable costs $180,000 $180,000 $220,000 $580,000 Fixed costs 50,000 50,000 40,000 140,000 Total costs$230,000 $230,000 $260,000 $720,000 Income (loss) $ 70,000 $(20,000) $ 80,000 $130,000 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 in net income for the current year that will result from the discontinuance of Product G?a.$30,000 decreaseb.$30,000 increasec.$20,000 decreased.$20,000 increase The condensed income statement for a Fletcher Inc. for the past year is as follows:SalesCosts:Variable costsFixed costsTotal costsIncome (loss)F$300,000ProductG$210,000$180,00050,000$230,000$230,000$ 70,000 $(20,000)$180,00050,000H$340,000$220,00040,000$260,000$ 80,000Total$850,000$580,000140,000$720,000$130,000Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance wouldhave no effect on the total fixed costs and expenses or on the sales of Products F and H. What is the amount of change in net income for the currentyear that will result from the discontinuance of Product G?Oa. $30,000 decreaseOb. $30,000 increaseOc. $20,000 decreaseOd. $20,000 increase

The income statement shows the net income or net loss calculated by deducting the expenses from the…

Answered: The condensed income statement for a…

Principles of Accounting Volume 2

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ISBN:9781947172609

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Chapter10: Short-term Decision Making

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Problem 12MC: Youngstown Construction plans to discontinue its rooting segment. Last year, this segment generated...

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The condensed income statement for a Fletcher Inc. for the past year is as follows:

	Product
	F	G	H	Total
Sales	$300,000		$210,000		$340,000	$850,000
Costs:
Variable costs	$180,000		$180,000		$220,000	$580,000
Fixed costs	50,000		50,000		40,000	140,000
Total costs	$230,000		$230,000		$260,000	$720,000
Income (loss)	$ 70,000		$(20,000)		$ 80,000	$130,000

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 in net income for the current year that will result from the discontinuance of Product G?

a.$30,000 decrease

b.$30,000 increase

c.$20,000 decrease

d.$20,000 increase

The condensed income statement for a Fletcher Inc. for the past year is as follows:
Sales
Costs:
Variable costs
Fixed costs
Total costs
Income (loss)
F
$300,000
Product
G
$210,000
$180,000
50,000
$230,000
$230,000
$ 70,000 $(20,000)
$180,000
50,000
H
$340,000
$220,000
40,000
$260,000
$ 80,000
Total
$850,000
$580,000
140,000
$720,000
$130,000
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 in net income for the current
year that will result from the discontinuance of Product G?
Oa. $30,000 decrease
Ob. $30,000 increase
Oc. $20,000 decrease
Od. $20,000 increase

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