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Question 4 of 34 < > View Policies -/5 E: Current Attempt in Progress Crane has three product lines in its retail stores: flipflops,
Question 4 of 34 < > View Policies -/5 E: Current Attempt in Progress Crane has three product lines in its retail stores: flipflops, sandals, and slippers. Results of the fourth quarter are presented below: Flipflops Sandals Slippers Total Units sold 1,040 2,080 2,080 5.200 Revenue $20.800 Variable departmental costs 17.680 $41,600 $26,000 22,880 12,480 $88,400 53.040 Direct fixed costs 1.040 3,120 2,080 6,240 Allocated fixed costs 7.280 7.280 7.280 21,840 Net income (loss) $(5,200) $8,320 $4,160 $7,280 The allocated fixed costs are unavoidable. Demand of individual products are not affected by changes in other product lines. What will happen to profits if Crane discontinues the Flipflops product line? If Crane discontinues the Flipflops product line profit will Save for Later by $ Attempts: 0 of 1 used Submit Answer
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