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Brief Exercise.2 Crisp Company has four product lines: sour cream, ice cream, yogurt, and butter. The allocated fixed costs are based on units sold and

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Brief Exercise.2 Crisp Company has four product lines: sour cream, ice cream, yogurt, and butter. The allocated fixed costs are based on units sold and are unavoidable. Demand for individual products is not affected by changes in other product lines. 40% of the fixed costs are direct, and the other 60% are allocated. Results for June follow: Sour Cream Ice Cream Yogurt Butter Total Units sold 2,000 500 400 200 3,000 Revenue $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) S (1.000) $ 5,000 $ 2,800 $ 8,200 $15,000 Instructions Prepare an incremental analysis of the effect of dropping the sour cream product line

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