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Discontinue a Segment Product Omega has revenue of $ 1 9 5 , 0 0 0 , variable cost of goods sold of $ 1
Discontinue a Segment
Product Omega has revenue of $ variable cost of goods sold of $ variable selling expenses of $ and fixed costs of $ creating an operating loss of $
Question Content Area
a Prepare a differential analysis as of January to determine if Product Omega should be continued Alternative or discontinued Alternative assuming fixed costs are unaffected by the decision. If an amount is zero, enter If required, use a minus sign to indicate a loss.
Differential Analysis
Continue Alt or Discontinue Alt Product Omega
January
Line Item Description Continue
Product Omega
Alternative Discontinue
Product Omega
Alternative Differential
Effects
Alternative
Revenues $Revenues
$Revenues
$Revenues
Costs:
Variable cost of goods sold Variable cost of goods sold
Variable cost of goods sold
Variable cost of goods sold
Variable selling and admin. expenses Variable selling and admin. expenses
Variable selling and admin. expenses
Variable selling and admin. expenses
Fixed costs Fixed costs
Fixed costs
Fixed costs
Profit loss $Profit loss
$Profit loss
$Profit loss
Question Content Area
b Determine if Product Omega should be continued Alternative or discontinued Alternative
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