Wings Maju sells 3 different sets of child meals in its
restaurants: M1, M2, and M3. Changes in product lines do not affect
demand of other products. Results of July are
below:
M1
M2
M3
Total
Units sold
4,000
2,500
2,600
9,100
Revenue
$32,000
$30,000
$26,000
$88,000
Variable departmental costs
19,200
16,500
10,400
46,100
Direct fixed costs
5,000
7,000
4,000
16,000
Allocated fixed costs
6,500
8,500
7,500
22,500
Net income
$1,300
($2,000)
$4,100
$3,400
Seventy percent of the allocated...