Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

10th Edition

1259969495, 978-1259969492

More Books

Students also viewed these Accounting questions

Question

What types of factors might the firm monitor in its relationships?

Answered: 1 week ago

Question

1. Empirical or factual information,

Answered: 1 week ago

Question

1. To take in the necessary information,

Answered: 1 week ago