Keith 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:
Instructions
Prepare an incremental analysis of the effect of dropping the sour cream product line.

Question

Keith 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:  
Instructions
Prepare an incremental analysis of the effect of dropping the sour cream product line.

Quizplus · Accepted Answer

The Answer of Keith 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:  
Instructions
Prepare an incremental analysis of the effect of dropping the sour cream product line.

Keith Inc Has 4 Product Lines: Sour Cream, Ice Cream, Yogurt