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Ivanhoe Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes in other product
Ivanhoe Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes in other product lines. 30% of the fixed costs are direct, and the other 70% are allocated. Results of June follow:
Sour Cream | Ice Cream | Yogurt | Butter | Total | ||||||||||||||
Units sold | 2,160 | 540 | 432 | 216 | 3,348 | |||||||||||||
Revenue | $10,800 | $21,600 | $10,800 | $21,600 | $64,800 | |||||||||||||
Variable departmental costs | 6,480 | 14,040 | 4,536 | 5,184 | 30,240 | |||||||||||||
Fixed costs | 5,400 | 2,160 | 3,240 | 7,560 | 18,360 | |||||||||||||
Net income (loss) | $(1,080) | $5,400 | $3,024 | $8,856 | $16,200 |
show incremental analysis of the effect of dropping the sour cream product line. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
select an item Incremental direct laborIncremental revenueIncremental direct materialsIncremental variable cost savingsIncremental decrease in profits if droppedIncremental fixed cost savings | $enter a dollar amount | ||
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select an item Incremental revenueIncremental direct laborIncremental direct materialsIncremental variable cost savingsIncremental fixed cost savingsIncremental decrease in profits if dropped | enter a dollar amount | ||
select an item Incremental direct laborIncremental decrease in profits if droppedIncremental revenueIncremental fixed cost savingsIncremental direct materialsIncremental variable cost savings | enter a dollar amount | ||
select a closing name Incremental fixed cost savingsIncremental decrease in profits if droppedIncremental variable cost savingsIncremental revenueIncremental direct laborIncremental direct materials | $enter a total amount |
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