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Cullumber has three product lines in its retail stores: flipflops, sandals, and slippers. Results of the fourth quarter are presented below: Flipflops Sandals Slippers

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Cullumber has three product lines in its retail stores: flipflops, sandals, and slippers. Results of the fourth quarter are presented below: Flipflops Sandals Slippers Total Units sold 840 1,680 1,680 4,200 Revenue $16,800 $33,600 $21,000 $71,400 Variable departmental costs 14,280 18,480 10,080 42,840 Direct fixed costs 840 2,520 1,680 5,040 Allocated fixed costs 5,880 5,880 5,880 17,640 Net income (loss) $(4,200) $6,720 $3,360 $5,880 The allocated fixed costs are unavoidable. Demand of individual products are not affected by changes in other product lines. What will happen to profits if Cullumber discontinues the Flipflops product line? If Cullumber discontinues the Flipflops product line profit will by $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer

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