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Sunland Company has three product lines in its retail stores: books, videos, and music. The allocated fixed costs are based on units sold and are

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Sunland Company has three product lines in its retail stores: books, videos, and music. The allocated fixed costs are based on units sold and are unavoidable. Demand of individual products is not affected by changes in other product lines. Results of the fourth quarter are presented below: Books Music Videos Total Units sold 940 1,880 1.880 4,700 Revenue $ 22,560 $ 45,120 $ 28,200 $ 95,880 Variable departmental costs 14,100 20,680 21,620 56,400 Direct fixed costs 2,820 5,640 3.760 12.220 Allocated fixed costs 4,136 8.272 8.272 20,680 Net income (loss) $ 1,504 $ 10,528 $(5,452) $6,580 Prepare an incremental analysis of the effect of dropping the Video product line. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) $ $

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