Question

Discontinue a Segment Product A has revenue of $195,100, variable cost of goods sold of $116,500,...

  1. 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 negative numbers use a minus sign.

    Differential Analysis
    Continue Product A (Alt. 1) or Discontinue Product A (Alt. 2)
    May 9
    Continue Product
    A (Alternative 1)    		 Discontinue Product
    A (Alternative 2)    		 Differential Effect
    on Income
    (Alternative 2)
    Revenues $ $ $
    Costs:
    Variable cost of goods sold
    Variable selling expenses
    Fixed costs
    Income (Loss) $ $ $

    Determine if Product A should be continued (Alternative 1) or discontinued (Alternative 2).

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Differential Analysis
Continue Product A (Alt. 1) or Discontinue Product A (Alt. 2)
9-May
Continue Product Discontinue Product Differential Effect
A (Alternative 1) A (Alternative 2) on Income
(Alternative 2)
Revenues 195100 0 -195100
Costs:
Variable cost of goods sold -116500 0 116500
Variable selling expenses -32400 0 32400
Fixed costs -61400 -61400 0
Income (Loss) -15200 -61400 -46200
Should be continued as loss will increase if discontinued
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
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...
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...
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....
#6 Differential Analysis for a Discontinued Product The condensed product-line income statement for Dish N’ Dat...
#6 Differential Analysis for a Discontinued Product The condensed product-line income statement for Dish N’ Dat Company for the month of March is as follows: Dish N’ Dat Company Product-Line Income Statement For the Month Ended March 31 Bowls Plates Cups Sales $65,800 $89,700 $27,600 Cost of goods sold 26,500 32,200 15,200 Gross profit $39,300 $57,500 $12,400 Selling and administrative expenses 30,400 35,100 14,800 Income from operations $8,900 $22,400 $(2,400) Fixed costs are 17% of the cost of goods sold...
Differential Analysis for a Discontinued Product The condensed product-line income statement for Porcelain Tableware Company for...
Differential Analysis for a Discontinued Product The condensed product-line income statement for Porcelain Tableware Company for the month of May is as follows: Porcelain Tableware Company Product-Line Income Statement For the Month Ended May 31 Bowls Plates Cups Sales $64,400 $89,800 $27,000 Cost of goods sold 26,900 32,700 14,900 Gross profit $37,500 $57,100 $12,100 Selling and administrative expenses 29,400 34,000 15,300 Income from operations $8,100 $23,100 $(3,200) Fixed costs are 15% of the cost of goods sold and 42% of...
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...
Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the...
Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $64,700 $89,600 $26,200 Cost of goods sold (26,300) (32,000) (14,000) Gross profit $38,400 $57,600 $12,200 Selling and administrative expenses (29,100) (35,600) (16,300) Operating income (loss) $9,300 $22,000 $(4,100) Fixed costs are 12% of the cost of goods sold and 45% of the selling...
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...
Differential Analysis for a Discontinued Product A condensed income statement by product line for Crown Beverage...
Differential Analysis for a Discontinued Product A condensed income statement by product line for Crown Beverage Inc. indicated the following for Royal Cola for the past year: Sales $233,900 Cost of goods sold 109,000 Gross profit $124,900 Operating expenses 144,000 Loss from operations $(19,100) It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 20% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT