Discontinue a Segment Product T has revenue of $194,100, variable cost of goods sold of $114,000, variable selling expenses of $31,400, and fixed costs of $60,800, creating a loss from operations of $12,100. Prepare a differential analysis as of May 9, to determine whether 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 "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue Product T (Alt. 1) or Discontinue Product T (Alt. 2) May 9 Continue Differential Discontinue Product Effect Product I (Alternative on Income T(Alternative 2) 1) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling expenses Fixed costs O 000 noon 0000 Income (Loss) Determine if Product T should be continued (Alternative 1) or discontinued (Alternative 2). Continued Discontinued Make or Buy A restaurant bakes its own bread for a cost of $148 per unit (100 loaves), including fixed costs of $37 per unit. A proposal is offered to purchase bread from an outside source for $100 per unit, plus $9 per unit for delivery. Prepare a differential analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Bread (Alt. 1) or Buy Bread (Alt. 2) July 7 Differential Effect Make Bread Buy Bread on Income (Alternative 1) (Alternative 2) (Alternative 2) $0 $0 $0 Sales price Unit Costs: Purchase price Delivery Variable costs Fixed factory overhead Income (Loss) Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread. Replace Equipment A machine with a book value of $249,300 has an estimated six-year life. A proposal is offered to sell the old machine for $216,800 and replace it with a new machine at a cost of $280,500. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $50,900 to $40,700. Prepare a differential analysis dated October 3 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) October 3 Continue Replace old Differential with Machine Effect Old Machine (Alternative (Alternative on Income 2) 1) (Alternative 2) Revenues: Proceeds from sale of old machine Costs: Purchase price Direct labor (6 years) DUL 000 Income (Loss) Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)? Continue with the old machine Replace the old machine