Crane has three product lines in its retail stores: kites, wind socks, and flags. Results of the fourth quarter are presented below: Wind Socks 1,640 Units sold Revenue Variable departmental costs Direct fixed costs Allocated foxed costs Net income (loss) Kites 820 $18,040 13.940 820 6,560 $(3,280) $32,800 18,040 2460 6,560 $5,740 Flags 1.640 1,640 Total $18,860 $69,700 9,840 41,820 4,920 6,560 $820 4,100 19,680 $8.200 The allocated foxed costs are unavoidable. Demand of individual products is not affected by changes in other product lines, What will happen to profits if Crane discontinues the Kites product line? It Crane discontinues the Kites product line, there will be a in profit by $
Crane has three product lines in its retail stores: kites, wind socks, and flags. Results of the fourth quarter are presented below: Wind Socks 1,640 Units sold Revenue Variable departmental costs Direct fixed costs Allocated foxed costs Net income (loss) Kites 820 $18,040 13.940 820 6,560 $(3,280) $32,800 18,040 2460 6,560 $5,740 Flags 1.640 1,640 Total $18,860 $69,700 9,840 41,820 4,920 6,560 $820 4,100 19,680 $8.200 The allocated foxed costs are unavoidable. Demand of individual products is not affected by changes in other product lines, What will happen to profits if Crane discontinues the Kites product line? It Crane discontinues the Kites product line, there will be a in profit by $
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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Transcribed Image Text:Crane has three product lines in its retail stores: kites, wind socks, and flags. Results of the fourth quarter are presented below.
Units sold
Revenue
Variable departmental costs
Direct fixed costs
Allocated fixed costs
Net income (loss)
Kites
820
$18,040
13,940
820
6,560
$(3,280)
Wind Socks
1,640
$32,800
18,040
2,460
6,560
$5,740
Flags
If Crane discontinues the Kites product line, there will be a
1,640
$18,860
9,840
1,640
6,560
$820
Total
4,100
$69,700
41,820
4,920
19,680
$8,200
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 Crane discontinues the Kites product line?
in profit by $
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