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Brief Exercise 10 Keith Inc. has 4 product lines so cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes
Brief Exercise 10 Keith Inc. has 4 product lines so 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 200 Units sold Revenue Variable departmental costs Fixed costs Net income (loss) 500 $20,000 13,000 400 2,000 $10,000 6,000 $ 10,000 20,000 60,000 4,800 28,000 3.0007.00017.000 $(1,000) 5,000 $ 2,8008,200 $15,000 4,200 Prepare an incremental analysis of the effect of dropping the sour cream product line. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)
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