Question 3 (Answer either A or B for 10 Marks) A) Dolls R Us sells three products in its retail stores: baby dolls, teenage dolls, and plush dolls. Results of the fourth quarter are below: Baby Dolls Teenage Dolls Plush Dolls Total Units sold 1,000 2,000 2,000 5,000 Revenue $32,000 $43,000 $26,000 $101,000 22,000 13,000 24,000 Variable departmental costs 59,000 5,000 Direct fixed costs 12,000 4,000 6.000 Allocated fixed costs 7,000 7.000 20.000 $ (1.000) Net income (loss) $ 8.000 $ 10.000 $ 3.000 Instructions Demand for individual products is not affected by changes in other product lines. Prepare ar incremental analysis to determine if the Baby Dolls should be discontinued. K M 3,000