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Discontinue a Segment Product X has revenue of $193,300, variable cost of goods sold of $113,200, variable selling expenses of $32,000, and fixed costs
Discontinue a Segment Product X has revenue of $193,300, variable cost of goods sold of $113,200, variable selling expenses of $32,000, and fixed costs of $61,000, creating a loss from operations of $12,900. Prepare a differential analysis as of May 9 to determine whether to Continue Product X (Alternative 1) or Discontinue Product X (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 X (Alt. 1) or Discontinue Product X (Alt. 2) Revenues Costs: May 9 Continue Product X Discontinue Product X Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Variable cost of goods sold Variable selling expenses Fixed costs Profit (Loss) Determine if Product X should be continued (Alternative 1) or discontinued (Alternative 2).
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