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Keith Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes in other product
Keith 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: Total Sour CreamIce Cream Yogurt Butter 200 500 $20,000 13,000 2,000 2,000 Units sold Revenue 3,100 $10,000 $20,000 $60,000 400 6,000 4,200 costs Patmental costs $10.000 4,800 3,000 OO 2,800 S8,200 Fixed costs Net income (loss) 17,000 $15,000 Prepare an 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).)
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