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Sheridan Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes in other product
Sheridan 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 2,280 570 456 228 3,534 Revenue $11.400 $22.800 $11,400 $22.800 $68,400 Variable departmental costs 6,840 14,820 4,788 5,472 31,920 Fixed costs 5,700 2.280 3,420 7,980 19.380 Net income (loss) $(1.140) $5,700 $3,192 $9.348 $17.100 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 eg.-45 or parentheses e.g. (45).) $ Net income (loss) 3,420 7,980 19 $(1,140) $5,700 $3,192 $9,348 $17 Prepare an incremental analysis of the effect of dropping the sour cream product line. (Enter negative amous negative sign preceding the number e.g. -45 or parentheses e.g. (45).) $ Incremental direct materials Incremental fixed cost savings Incremental revenue Incremental variable cost savings Incremental direct labor Incremental decrease in profits if dropped S
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