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The condensed income statement for Northeast Products Co. for the past year is presented as...

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Accounting

The condensed income statement for Northeast Products Co. for the past year is presented as follows:

Product

Rims

Covers

Clamps

Total
Sales

$300,000

$320,000

$340,000

$960,000
Less variable costs

180,000

190,000

220,000

590,000
Contribution margin

$120,000

$ 130,000

$120,000

$370,000
Less fixed costs

50,000

140,000

150,000

340,000
Income (loss) from operations.

$ 70,000

$ (10,000)

$ (30,000)

$ 30,000

Management is considering the discontinuance of the manufacture and sale of Clamps 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 the other products. What is the amount of change in income from operations for the current year that will result from the discontinuance of Clamps?

Group of answer choices

$150,000 decrease

$340,000 decrease

$120,000 decrease

$120,000 increase

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