Discontinue a Segment

Product Tango has revenue of $$195,000,$ variable cost of goods sold of $$113,100,$ variable selling expenses of $$33,400,$ and fixed cost $$50,$ creating

an operating loss of $$(10,800).$

a$.$ Prepare a differential analysis as of February $13$ to determine if Product Tango 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 Product Tango $($Alt$.1)$ or Discontinue Product Tango $($Alt$.2)$

February $13$

b$.$ Determine if Product Tango should be continued $($Alternative $1)$ or discontinued $($Alternative $2).$