30. Keith Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand...
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30. 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 Butter Total 200 Ice Cream 500 Yogurt 400 Units sold Revenue Variable departmental 3,100 2,000 $10,000 6,000 $20,000 $60,000 $10,000 4,200 $20,000 13,000 28,000 4,800 costs nd 3,000 $ 8.200 $15.000 Fixed costs 7,000 17.000 2.000 $5.000 5.000 $1.000) Net income (loss) $2.800 Instructions Prepare an incremental analysis of the effect of dropping the sour cream product line. doois
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