Sheridan Company Has Three product lines and its retail stores: books, videos, and music. the allocated fixed costs are based on units sold and are unavoidable. Demand on individual products is not affected by changes in other product lines. results of the fourth quarter are represented below:
Books Music Videos
Units sold 920 1840 1840 4600
Revenue $22,080 $44,160 $27,600 $93,840
Variable department costs 13,800 20,240 21,160 55,200
Direct fixed costs 2,760 5,520 3,680 11,960
Allocated fixed costs 4,048 8,096 8,096 20,240
—------- —-------- —------- —----------
Net income (loss) $1,472 $10,304 $(5,336) $6,440
prepare an incremental Analysis of the effect of dropping the video product line. ( enter negative amounts using either negative sign preceding the number -45 or parentheses (45).)