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Question 9 of 12 < > View Policies -/12.5 III Current Attempt in Progress Cullumber has three product lines in its retail stores: flipflops,
Question 9 of 12 < > View Policies -/12.5 III Current Attempt in Progress Cullumber 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 1,280 2,560 2,560 6,400 Revenue $25,600 $51,200 $32,000 $108,800 Variable departmental costs 21,760 28,160 15,360 65,280 Direct fixed costs 1,280 3,840 2,560 7,680 Allocated fixed costs 8,960 8,960 8,960 26,880 Net income (loss) $(6,400) $10,240 $5,120 $8,960 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 Cullumber discontinues the Flipflops product line? If Cullumber discontinues the Flipflops product line profit will by $
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