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| 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) | $ (5,000) | $ 60,000 |
Management is considering the discontinuance of the manufacture and sale of Product T 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 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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- Youngstown Construction plans to discontinue its rooting segment. Last year, this segment generated a contribution margin of $65.000 and incurred $70.000 in fixed costs. Discontinuing the segment will allow the company to avoid half of the fixed costs. What effect is expected to occur to the companys overall profit? A. a decrease of $5,000 B. a decrease of $30,000 C. a decrease of $5,000 D. an increase of $30,000The condensed income statement for Monroe Corp. for the past year is as follows: Product C Sales $720,000 $320,000 Costs: Variable costs $610,000 $ 220,000 Fixed costs 120,000 40,000 Total costs $730,000 $260,000 Income (loss) $ (10,000) $ 60,000 Management is considering the discontinuance of the manufacture and sale of Product B 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 Product C. What is the amount of change in net income for the current year that will result from the discontinuance of Product B? O $10,000 increase O $110,000 decrease O $110,000 increase O $10,000 decreaseThe condensed income statement for a business for the past year is as follows: Product A Z Sales $660,000 $320,000 Less variable costs 540,000 220,000 Contribution margin $ 120,000 $100,000 Less fixed costs 145,000 40,000 Income (loss) from operations $ (25,000) $ 60,000 Management is considering the discontinuance of the manufacture and sale of Product A 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 Product Z. What is the amount of change in net income for the current year that will result from the discontinuance of Product A (amount and increase or decrease)?
- 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?Below is the condensed income statement for Jay Tools for the past year: Product T1 T2 Sales $340,000 $160,000 Costs: Variable costs $270,000 $110,000 Fixed costs 80,000 20,000 Total costs $350,000 $130,000 Income (loss) $(10,000) $ 30,000 Since product T1 is not giving profit, Jay is considering discontinuing product T1 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 Product T2. What is the amount of change in net income for the current year that will result from the discontinuance of Product T1? Select one: a. $70,000 increase. b. $50,000 increase. c. $50,000 decrease. d. $70,000 decrease. e. None of the above answers is correct.The condensed income statement for Hayden Corp. for the past year is as follows: 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) $ (5,000) $ 60,000 Management is considering the discontinuance of the manufacture and sale of Product T 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 Product U. The amount of change in profit for the current year that will result from the discontinuance of Product T is a
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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) $(590,000) Fixed costs (50,000) (50,000) (40,000) (140,000) Total costs $(230,000) $(230,000) $(260,000) $(730,000) Income (loss) $70,000 $(20,000) $80,000 $120,000 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 aThe following summarized data are shown in the projected income statement of Rachel Inc. for two of its product lines X and Y: Projected Income Statement Name of the product lines X Y Sales 370,000 190,000 Costs: Variable costs (230,000) (140,000) Fixed costs (70,000) (60,000) Total costs (300,000) (200,000) Income (loss) 70,000 (10,000) Management is considering shutting down the production and sale of Product Y. The shutdown would have no effect on the total fixed costs and on the sales of Product X. What would be the amount of expected change in profit that would result from the shutting down of Product Y? Group of answer choices Profit would be decreased by $50,000 Profit would be increased by $50,000 Profit would be decreased by $10,000 Profit would be increased by $10,000The 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. The amount of change in profit for the current year that will result from the discontinuance of Product G is a a.$20,000 decrease b.$30,000 increase c.$20,000 increase d.$30,000 decrease