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Duvel Ltd. currently manufactures three products: X, Y, and Z. Results from the previous fiscal year for these products are presented below: Product X Product
Duvel Ltd. currently manufactures three products: X, Y, and Z. Results from the previous fiscal year for these products are presented below: Product X Product Y Product Z Sales -units 7462 5036 9986 Sales price per unit $80 $44 $64 Variable cost per unit $55 $34 $32 Fixed costs $158899 $96630 $50865 Duvel is considering eliminating Product Y in order to focus their efforts on its other two products. The discontinuation of Product Y is expected to cause the following changes: A 17% increase in the production and sales of Product X A 9% decrease in the production and sales of Product Z 66% of the fixed costs of Product Y will be eliminated What is the incremental (change in) income of the company if Product Y is discontinued
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