CH25CT2

Froduct Omega has revenue of $2,375,000, variable cost of goods sold of $1,900,000, variable selling expenses of $250,000, and fixed costs of $300,000, creating an operating loss of $(75,000) a. Prepare a differential analysis as of January 15 to determine if Product Omega should be continued (Alternative 1 ) or discontinued (Aternative 2), assuming fixed cost: are unaffected by the decision. If an amount is zero, enter " 0 ", If required, use a minus sign to indicate a loss: Feedtack r check work For continue and discontnue aiternatives subtract the costs from the revenue. Determine the differential effect on income of the revenues; costs, and income (loss) by subtracting alternative 1 from alternative 2 . b. Determine if Product Omega should be continued (Aiternative 1) or discontinued (Alternative 2)