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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
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 its sold 1,840 460 368 184 2,852 venue $9,200 $18,400 $9,200 $18,400 $55,200 iable departmental costs 5,520 11,960 3,864 4,416 25,760 ed costs 4,600 1,840 2,760 6,440 15,640 t income (loss) $(920) $4,600 $2,576 $7,544 $13,800 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).) $ 6
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