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Sunland has three product lines in its retail stores: kites, wind socks, and flags. Results of the fourth quarter are presented below: Units sold Kites
Sunland has three product lines in its retail stores: kites, wind socks, and flags. Results of the fourth quarter are presented below: Units sold Kites Wind Socks Flags Total 1,160 2,320 2,320 5,800 Revenue $25,520 $46,400 $26,680 $98,600 Variable departmental costs 19,720 25,520 13,920 59,160 Direct fixed costs 1,160 3,480 2,320 6,960 Allocated fixed costs 9,280 9,280 9,280 27,840 Net income (loss) $(4,640) $8,120 $1,160 $11,600 The allocated fixed costs are unavoidable. Demand of individual products is not affected by changes in other product lines. What will happen to profits if Sunland discontinues the Kites product line? If Sunland discontinues the Kites product line, there will be a in profit by $ Save for Later Using multiple attempts will impact your score. 25% score reduction after attempt 2 Attempts: 0 of 3 used Submit
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