Carla Vista 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 | 1,920 | 480 | 384 | 192 | 2,976 |
| Revenue | $9,600 | $19,200 | $9,600 | $19,200 | $57,600 |
| Variable departmental costs | 5,760 | 12,480 | 4,032 | 4,608 | 26,880 |
| Fixed costs | 4,800 | 1,920 | 2,880 | 6,720 | 16,320 |
| Net income (loss) | $(960) | $4,800 | $2,688 | $7,872 | $14,400 |
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).)
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