Discontinue a Segment

Product T has revenue of $195,900, variable cost of goods sold of $113,400, variable selling expenses of $31,800, and fixed costs of $58,200, creating a loss from operations of $7,500.

Prepare a differential analysis as of September 12, 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". Use a minus sign to indicate a loss.

Differential Analysis
Continue Product T (Alt. 1) or Discontinue Product T (Alt. 2)
September 12
	Continue Product T (Alternative 1)	Discontinue Product T (Alternative 2)	Differential Effect on Income (Alternative 2)
Revenues	$	$	$
Costs:
Variable cost of goods sold
Variable selling and admin. expenses
Fixed costs
Income (Loss)	$	$	$

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