Discontinue a Segment

Product T has revenue of $195,500, variable cost of goods sold of $113,200, variable selling expenses of $32,200, and fixed costs of $61,000, creating a loss from operations of $10,900.

Differential analysisas 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 Product Discontinue Product Differential Effect T (Alternative 1) T (Alternative 2) on Income (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling expenses Fixed costs Income (Loss) Determine if Product T should be continued (Alternative 1) or discontinued (Alternative 2)