Tiny Tots Inc sells three products in its retail store's planes trains and cars Results of the
Question:
Tiny Tots Inc sells three products in its retail store's planes trains and cars Results of the fourth quarter are below
Planes Trains Cars Total
Units sold 1000 2000 2000 5000
Revenue 31000 43000 26000 100000
Variable departmental costs 22000 24000 13000 59000
Direct fixed costs 5000 4000 3000 12000
Allocated fixed costs 6000 7000 7000 20000
Net income 2000 8000 3000 9000
The demand for individual products is not affected by changes in other product lines What is the incremental effect if Tiny Tots should be discontinued.
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan