Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Crane R Us sells three products in its retail stores: baby dolls, teenage dolls, and plush dolls. Results of the fourth quarter are below: Baby
Crane 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 820 1,640 1,640 4,100 Revenue $26,240 $35,260 $21,320 $82,820 Variable departmental costs 18,040 19,680 10,660 48,380 Direct fixed costs 4,100 3,280 2,460 9,840 Allocated fixed costs 4,920 5,740 5,740 16,400 Net income (loss) $(820) $6,560 $2,460 $8,200 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).) $Net income (loss) $(820 $6,560 $2,460 $8,20 Demand for individual products is not affected by changes in other product lines. Prepare an incrementa Baby Dolls should be discontinued. (Enter negative amounts using either a negative sign preceding the number (45).) $ Direct fixed cost savings Variable cost savings Incremental costs Drop in profits if discontinued Incremental revenue - Rise in profits if discontinued $ Attempts Save for Later
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started