Discontinue a Segment

Product T has revenue of $193,900, variable cost of goods sold of $113,500, variable selling expenses of $33,700, and fixed costs of $59,300, creating a loss from operations of $12,600.

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Prepare a differential analysis as of September 12, 2014, to determine if Product T should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter zero "0".

Differential Analysis
Continue Product T (Alt. 1) or Discontinue Product T (Alt. 2)
September 12, 2014
		Continue Product T (Alternative 1)		Discontinue Product T (Alternative 2)		Differential Effect on Income (Alternative 2)
Revenues		$ Correct 8 of Item 1		$ Correct 9 of Item 1		$ Correct 10 of Item 1
Costs:
Variable cost of goods sold		Correct 13 of Item 1		Correct 14 of Item 1		Correct 15 of Item 1
Variable selling and admin. expenses		Correct 17 of Item 1		Correct 18 of Item 1		Correct 19 of Item 1
Fixed costs		Correct 21 of Item 1		Correct 22 of Item 1		Correct 23 of Item 1
Income (Loss)		$ Correct 25 of Item 1		$ Correct 26 of Item 1		$ Correct 27 of Item 1

Determine if Product T should be continued (Alternative 1) or discontinued (Alternative 2). SelectContinuedDiscontinuedCorrect 1 of Item 2