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Discontinue a Segment Product AG52 has revenues of $193,400, variable cost of goods sold of $116,800, variable selling expenses of $31,800, and fixed costs of
Discontinue a Segment
Product AG52 has revenues of $193,400, variable cost of goods sold of $116,800, variable selling expenses of $31,800, and fixed costs of $60,000, creating a loss from operations of $15,200.
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.
Continue Product AG52 (Alternative 1) | Discontinue Product AG52 (Alternative 2) | Differential Effect on Income (Alternative 2) | |
Revenues | $fill in the blank 8bacbff9607a025_3 | ||
Costs: | |||
Variable cost of goods sold | |||
Variable selling expenses | |||
Fixed costs | |||
Income (Loss) |
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