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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
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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