Mercer has three product lines in its retail stores: books, videos, and music. Results of the fourth quarter are presented below:
The allocated fixed costs are unavoidable. Demand of individual products are not affected by changes in other product lines.
Instructions
What will happen to profits if Mercer discontinues the Books product line?

Question

Mercer has three product lines in its retail stores: books, videos, and music. Results of the fourth quarter are presented below:  
The allocated fixed costs are unavoidable. Demand of individual products are not affected by changes in other product lines.
Instructions
What will happen to profits if Mercer discontinues the Books product line?

Quizplus · Accepted Answer

The Answer of Mercer has three product lines in its retail stores: books, videos, and music. Results of the fourth quarter are presented below:  
The allocated fixed costs are unavoidable. Demand of individual products are not affected by changes in other product lines.
Instructions
What will happen to profits if Mercer discontinues the Books product line?

Mercer Has Three Product Lines in Its Retail Stores: Books