The Condensed Income Statement for a Fletcher Inc

Multiple Choice

The condensed income statement for a Fletcher Inc. for the past year is as follows: 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
B) $30,000 increase
C) $20,000 decrease
D) $30,000 decrease