The Condensed Income Statement for a Business for the Past

Multiple Choice

The condensed income statement for a business for the past year is as follows:

Management is considering the discontinuance of the manufacture and sale of Blam 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 Wham.What is the amount of change in net income for the current year that will result from the discontinuance of Blam?

A) $10,000 decrease
B) $40,000 decrease
C) $10,000 increase
D) $70,000 decrease