Blossom has three product lines in its retail stores: flipflops, sandals, and slippers. Results of the...

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Blossom has three product lines in its retail stores: flipflops, sandals, and slippers. Results of the fourth quarter are presented below: Units sold Revenue Variable departmental costs Direct fixed costs Allocated fixed costs: Net income (loss) Flipflops 800 $16,000 13,600 800 5,600 $(4.000) Sandals Slippers 1,600 $32,000 17,600 2,400 5,600 $6,400 1,600 If Blossom discontinues the Flipflops product line profit wil 5,600 $20,000 $68,000 9,600 40,800 1,600 $3,200 Total 4,000 decrease increase 4,800 The allocated fixed costs are unavoidable. Demand of individual products are not affected by changes in other product lines. What will happen to profits if Blossom discontinues the Flipflops product line? 16,800 $5,600 by $ Blossom has three product lines in its retail stores: flipflops, sandals, and slippers. Results of the fourth quarter are presented below: Units sold Revenue Variable departmental costs Direct fixed costs Allocated fixed costs: Net income (loss) Flipflops 800 $16,000 13,600 800 5,600 $(4.000) Sandals Slippers 1,600 $32,000 17,600 2,400 5,600 $6,400 1,600 If Blossom discontinues the Flipflops product line profit wil 5,600 $20,000 $68,000 9,600 40,800 1,600 $3,200 Total 4,000 decrease increase 4,800 The allocated fixed costs are unavoidable. Demand of individual products are not affected by changes in other product lines. What will happen to profits if Blossom discontinues the Flipflops product line? 16,800 $5,600 by $

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