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

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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

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

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