Cullumber 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. Units sold Revenue Variable departmental costs Fixed costs Net income (loss) Sour Cream 2,120 $10,600 6,360 5,300 $(1.060) Ice Cream 530 $21,200 13,780 2.120 $5,300 Yogurt 424 $10,600 4,452 3,180 $2.968 Butter 212 $21,200 5.088 7,420 $8.692 Total 3,286 $63,600 29,680 18,020 $15,900 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 eg -45 or parentheses eg. (45))

Cullumber 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. Units sold Revenue Variable departmental costs Fixed costs Net income (loss) Sour Cream 2,120 $10,600 6,360 5,300 $(1.060) Ice Cream 530 $21,200 13,780 2.120 $5,300 Yogurt 424 $10,600 4,452 3,180 $2.968 Butter 212 $21,200 5.088 7,420 $8.692 Total 3,286 $63,600 29,680 18,020 $15,900 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 eg -45 or parentheses eg. (45))

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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