9. Prepare an incremental analysis of the effect of dropping the sour cream product line.

2. Keith Inc. 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 June follow: Butter Sour Cream ce Cream Yogurt 500 400 200 3,100 Units sold 2,000 $20,000 $10,000 $10,000 $20,000 $60,000 Revenue 4,200 6,000 4,800 28,000 Variable departmental costs 13,000 000 3,000 7,000 000 Fixed costs $U,000) s 5,000 s 2,800 s 8,200 $15,000 Net income (loss)