Discontinue a Segment

Product 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 $($Alternative $2),$ assuming fixed costs are unaffected by the decision. If an amount is zero, enter $"0".$ If required, use a minus sign to indicate a loss.

Differential Analysis

Continue $($Alt$.1)$ or Discontinue $($Alt$.2)$ Product Omega January $15$

$\backslash$table$[[$Line Item Description,$\backslash$table$[[$Continue$],[$Product Omega$],[($Alternative $1)]],\backslash$table$[[$Discontinue$],[$Product Omega$],[($Alternative $2)]],\backslash$table$[[$Differential$],[$Effects$],[($Alternative $2]]],[$Revenues$,$$$,$$$,$$