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Business, 22.07.2020 22:01, reetajmahfouz3816
Keith 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 2,000 500 400 200 3,100 Revenue $10,000 $20,000 $10,000 $20,000 $60,000 Variable departmental costs 6,000 13,000 4,200 4,800 28,000 Fixed costs 5,000 2,000 3,000 7,000 17,000 Net income (loss) $(1,000) $5,000 $2,800 $8,200 $15,000 Prepare an incremental analysis of the effect of dropping the sour cream product line.
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Keith Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual prod...
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