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View Policies Current Attempt in Progress Blossom has three product lines in its retail stores: flipflops, sandals, and slippers. Results of the fourth quarter are
View Policies Current Attempt in Progress Blossom 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 800 1,600 1,600 4,000 Revenue $16,000 $32,000 $20,000 $68.000 Variable departmental costs 13,600 17,600 9,600 40.800 Direct fixed costs 800 2,400 1,600 4,800 Allocated fixed costs 5,600 5,600 5,600 16.800 Net income (loss) $(4,000) $6,400 $3,200 $5,600 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 Blossom discontinues the Flipflops product line? If Blossom discontinues the Flipflops product line profit will by $
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