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4 points Advise the CEO whether it would be a good decision to drop the sour cream product line. Support your position by showing computations

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4 points Advise the CEO whether it would be a good decision to drop the sour cream product line. Support your position by showing computations of the effect of that decision 1. Keith Smoothies has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes in other product lines. 30% of the fixed costs are direct, and the other 70% are allocated. Results of February were as follows: Sour Cream Ice Cream Yogurt Butter Total Units sold 2,000 500 400 200 3,100 Revenue (Sh) 10,000 20,000 10,000 20,000 60,000 Variable departmental costs 6,000 13,000 4,200 4,800 28,000 Fixed costs 5.000 2.000 3.000 7.000 17.000 Net income (loss) Sh (1.000) Sh 5.000 Sh2.800 Sh 8.200 Sh 15.000

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