Question
Discontinue a Segment Product AG52 has revenues of $195,100, variable cost of goods sold of $114,100, variable selling expenses of $32,100, and fixed costs of
Discontinue a Segment Product AG52 has revenues of $195,100, variable cost of goods sold of $114,100, variable selling expenses of $32,100, and fixed costs of $60,500, creating a loss from operations of $11,600. 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 Continue Product AG52 (Alternative 1) (Alt. 2) October 7 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) 000 0 0000 000 0 b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2)
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