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Crane has three product lines in its retail stores: ipops, sandals, and slippers. Results of the fourth quarter are presented below: Flipops Sandals Slippers Total
Crane has three product lines in its retail stores: ipops, sandals, and slippers. Results of the fourth quarter are presented below: Flipops Sandals Slippers Total Units sold 1.040 2.080 2.080 5.200 Revenue 320.800 541.600 3.26.000 388.400 Variable departmental costs 17.680 22.880 12.480 53.040 Direct xed costs 1.040 3.120 2.080 6.240 Allocated xed costs 7.280 2.280 2.280 2 1.840 Net income [loss] $5.200) $8.320 $4.160 $7.280 The allocated xed costs are unavoidable. Demand of individual products are not affected by changes in other product lines. What will happen to prots ifCrane discontinues the Flipops product line? If Crane discontinues the Flipops product line prot will by $ 5200
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