ch 25 2

Discontinue a Segment Product X has revenue of $194,400, variable cost of goods sold of $115,900, variable selling expenses of $33,300, and fixed costs of $58,500, creating a loss from operations of $13,300. Prepare a differential analysis as of May 9 to determine whether to Continue Product X (Alternative 1) or Discontinue Product X (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 X (Alt. 1) or Discontinue Product X (Alt. 2) May 9 Continue Discontinue Differential Product X Product X Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues $ Costs: Variable cost of goods sold Variable selling expenses Fixed costs Profit (Loss)