Multiple Choice Practice Questions-Differential Analysis 1. 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 b. $30,000 increase c. $20,000 decrease d. $30,000 decrease Product G $210,000 H $340,000 $180,000 $180,000 $220,000 50,000 50,000 40,000 $230,000 $230,000 $260,000 $70,000 $(20,000) $ 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? a. $20,000 increase

Multiple Choice Practice Questions-Differential Analysis 1. 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 b. $30,000 increase c. $20,000 decrease d. $30,000 decrease Product G $210,000 H $340,000 $180,000 $180,000 $220,000 50,000 50,000 40,000 $230,000 $230,000 $260,000 $70,000 $(20,000) $ 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? a. $20,000 increase

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.16E

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