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Discontinue a Segment Product Tango has revenue of $195,100, variable cost of goods sold of $113,400, variable selling expenses of $33,500, and fixed costs of
Discontinue a Segment Product Tango has revenue of $195,100, variable cost of goods sold of $113,400, variable selling expenses of $33,500, and fixed costs of $60,900, creating an operating loss of $(12,700). 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 Continue Discontinue Differential Product Product Effects Tango Tango (Alternative (Alternative (Alternative 2) 1) 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) Feedback Check My Work For continue and discontinue alternatives subtract the costs from the revenue. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2). Continued
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