Oriole 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
2,200
550
440
220
3,410
Revenue
$11,000
$22,000
$11,000
$22,000
$66,000
Variable departmental costs
6,600
14,300
4,620
5,280
30,800
Fixed costs
5,500
2,200
3,300
7,700
18,700
Net income (loss)
$(1,100)
$5,500
$3,080
$9,020
$16,500
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).)