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Carla Vista R Us sells three products in its retail stores: baby dolls, teenage dolls, and plush dolls. Results of the fourth quarter are below:
Carla Vista R Us sells three products in its retail stores: baby dolls, teenage dolls, and plush dolls. Results of the fourth quarter are below: Baby Dolls Teenage Dolls Plush Dolls Total Units sold 1,180 2,360 2,360 5,900 Revenue $37,760 $50,740 $30,680 $119,180 Variable departmental costs 25,960 28,320 15,340 69,620 Direct fixed costs 5,900 4,720 3,540 14,160 Allocated fixed costs 7,080 8,260 8,260 23,600 Net income (loss) $(1,180) $9,440 $3,540 $11,800 Demand for individual products is not affected by changes in other product lines. Prepare an incremental analysis to determine if the Baby Dolls should be discontinued. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)$9,440 $3,540 $11,800 Demand for individual products is not affected by changes in other product lines. Prepare an incremental analysis to determine if the Baby Dolls should be discontinued. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Drop in profits if discontinued Rise in profits if discontinued Incremental revenue Direct fixed cost savings Incremental costs Variable cost savings $ Attempts: 0 of 1 used Submit Answer Save for Later
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