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View Policies Current Attempt in Progress Ivanhoe Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is
View Policies Current Attempt in Progress Ivanhoe 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 2,160 540 432 216 3,348 Revenue $10,800 $21,600 $10,800 $21,600 $64,800 Variable departmental costs 6,480 14,040 4,536 5,184 30,240 Fixed costs 5,400 2,160 3,240 7,560 18,360 Net income (loss) $(1,080) $5,400 $3,024 $8,856 $16,200 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).) eTextbook and Media $ Attempts: 0 of 1 used Submit Answer
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