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Dolls 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 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 1,000 Teenage Dolls Plush Dolls Total Units sold 2,000 2,000 5,000 Revenue Variable departmental costs Direct fixed costs Allocated fixed costs Net income (loss) $32,000 22,000 5,000 6,000 $ (1,000) $43,000 24,000 4,000 7,000 8,000 $26,000 13,000 3,000 7,000 S 3,000 $101,000 59,000 12,000 20,000 10,000 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 us either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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