Question: need answer right now my assignment is due please and thank you Sandhill Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter.

need answer right now my assignment is due please and thank you

need answer right now my assignment is due please and thank you

Sandhill 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 Ice Cream Yogurt Butter Total Units sold 2,400 600 480 240 3,720 Revenue $12,000 $24,000 $12,000 $24,000 $72,000 Variable departmental costs 7,200 15,600 5,040 5,760 33,600 Fixed costs 6,000 2,400 3,600 8,400 20,400 Net income (loss) $(1,200) $6,000 $3,360 $9,840 $18,000 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 e.g. -45 or parentheses e.g. (45).)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!