Discontinue a Segment

Product AG52 has revenues of $195,000, variable cost of goods sold of $113,600, variable selling expenses of $32,900, and fixed costs of $58,100, creating a loss from operations of $9,600.

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 Analysis Continue Product AG52 (Alt. 1)or Discontinue Product AG52 (Alt. 2) 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) $ $ $

b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2).