Question
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 | |||
| Continue (Alt. 1) or Discontinue (Alt. 2) Product AG52 | |||
| October 7 | |||
| Continue Product AG52 (Alternative 1) | Discontinue Product AG52 (Alternative 2) | Differential Effect on Income (Alternative 2) | |
| Revenues | $ | $ | |
| Costs: | |||
| Variable cost of goods sold | |||
| Variable selling expenses | |||
| Fixed costs | |||
| Income (Loss) | $ | $ | $ |
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