Question

Product TS-20 has revenue of $103,040, variable cost of goods sold of $51,070, variable selling expenses...

Product TS-20 has revenue of $103,040, variable cost of goods sold of $51,070, variable selling expenses of $21,890, and fixed costs of $36,440, creating a loss from operations of $6,360.

Required:
1. Prepare a differential analysis as of September 12 to determine if Product TS-20 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
2. Determine if Product TS-20 should be continued (Alternative 1) or discontinued (Alternative 2).
Amount Descriptions
Fixed
Income (loss)
Revenue
Total costs
Variable cost of goods sold
Variable selling and administrative expenses

Prepare a differential analysis as of September 12 to determine if Product TS-20 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.

Differential Analysis

Continue (Alternative 1) or Discontinue (Alternative 2) Product TS-20

September 12, 2016

1

Continue Product TS-20

Discontinue Product TS-20

Differential Effect on Income

2

(Alternative 1)

(Alternative 2)

(Alternative 2)

3

4

Costs:

5

6

7

8

9

Determine if Product TS-20 should be continued (Alternative 1) or discontinued (Alternative 2).

Continued

Discontinued

The company is indifferent since the result is the same regardless of which alternative is chosen.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Differential Analysis - Product Ts-20
COntinue
(Alternative-1)		 Discontinue
( Alternative-2)		 Differential Effect on Income
(Alternative-2)
Revenue 103040 -103040
Cost
Variable cost of Goods Sold -$51,070.00 $51,070.00
Variable Selling Expense -$21,890.00 $21,890.00
Fixed Cost -$36,440.00 -$36,440.00 $0.00
Income /(Loss) -$6,360.00 -$36,440.00 -$30,080.00
2. Product TS-20 Should coninuted because there will be loss of $30080 by discontinuing the Product TS-20
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Product Alpha has revenue of $102,960, variable cost of goods sold of $51,890, variable selling expenses...
Product Alpha has revenue of $102,960, variable cost of goods sold of $51,890, variable selling expenses of $21,440, and fixed costs of $36,320, creating a loss from operations of $6,690. Required: 1. Prepare a differential analysis as of December 10 to determine whether Product Alpha should be continued (Alternative 1) or discontinued (Alternative 2), assuming that fixed costs are unaffected by the decision. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text...
Discontinue a Segment Product A has revenue of $195,100, variable cost of goods sold of $116,500,...
Discontinue a Segment Product A has revenue of $195,100, variable cost of goods sold of $116,500, variable selling expenses of $32,400, and fixed costs of $61,400, creating a loss from operations of $15,200. Prepare a differential analysis as of May 9, to determine whether Product A should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or...
Discontinue a Segment Product T has revenue of $193,800, variable cost of goods sold of $115,800,...
Discontinue a Segment Product T has revenue of $193,800, variable cost of goods sold of $115,800, variable selling expenses of $33,800, and fixed costs of $59,800, creating a loss from operations of $15,600. Prepare a differential analysis as of May 9, to determine whether Product T should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or...
roduct A has revenue of $195,000, variable cost of goods sold of $115,700, variable selling expenses...
roduct A has revenue of $195,000, variable cost of goods sold of $115,700, variable selling expenses of $33,500, and fixed costs of $60,900, creating a loss from operations of $15,100. Prepare a differential analysis as of May 9, to determine whether Product A should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use...
Discontinue a Segment Product AG52 has revenues of $193,800, variable cost of goods sold of $115,600,...
Discontinue a Segment Product AG52 has revenues of $193,800, variable cost of goods sold of $115,600, variable selling expenses of $33,300, and fixed costs of $59,900, creating a loss from operations of $15,000. a. Prepare a differential analysis as of October 7 to determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Use a minus sign to indicate a loss. Analysis...
Discontinue a Segment Product AG52 has revenues of $193,000, variable cost of goods sold of $113,700,...
Discontinue a Segment Product AG52 has revenues of $193,000, variable cost of goods sold of $113,700, variable selling expenses of $31,700, and fixed costs of $58,200, creating a loss from operations of $10,600. a. Prepare a differential analysis as of October 7 to determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential...
A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit...
A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $388,400 Cost of goods sold 186,600 Gross profit $201,800 Operating expenses 250,100 Loss from operations $ (48,300) It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 26% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed costs will not be materially...
Product B has a revenue of $75,000, variable cost of $70,000, and fixed cost of $30,000....
Product B has a revenue of $75,000, variable cost of $70,000, and fixed cost of $30,000. Prepare a differential analysis dated Aug 10, 2019 to determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.
The condensed product-line income statement for Dish N’ Dat Company for the month of May is...
The condensed product-line income statement for Dish N’ Dat Company for the month of May is as follows: Dish N’ Dat Company Product-Line Income Statement For the Month Ended May 31 1 Bowls Plates Cups 2 Sales $71,200.00 $105,270.00 $31,400.00 3 Cost of goods sold 33,090.00 42,230.00 16,610.00 4 Gross profit $38,110.00 $63,040.00 $14,790.00 5 Selling and administrative expenses 27,340.00 42,800.00 16,870.00 6 Income from operations $10,770.00 $20,240.00 $(2,080.00) Fixed costs are 20% of the cost of goods sold and...
A restaurant bakes its own bread for a cost of $165 per unit (100 loaves), including...
A restaurant bakes its own bread for a cost of $165 per unit (100 loaves), including fixed costs of $41 per unit. A proposal is offered to purchase bread from an outside source for $110 per unit, plus $18 per unit for delivery. Required: 1. Prepare a differential analysis dated August 16 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming fixed costs are unaffected by the decision. Refer to the list of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT