Discontinue a Segment

Product X has revenue of $194,000, variable cost of goods sold of $114,700, variable selling expenses of $31,900, and fixed costs of $58,500, creating a loss from operations of $11,100.

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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.

	Continue Product X (Alternative 1)	Discontinue Product X (Alternative 2)	Differential Effects (Alternative 2)
Revenues	$fill in the blank b6e0bb074ffb02d_1	$fill in the blank b6e0bb074ffb02d_2	$fill in the blank b6e0bb074ffb02d_3
Costs:
Variable cost of goods sold	fill in the blank b6e0bb074ffb02d_4	fill in the blank b6e0bb074ffb02d_5	fill in the blank b6e0bb074ffb02d_6
Variable selling expenses	fill in the blank b6e0bb074ffb02d_7	fill in the blank b6e0bb074ffb02d_8	fill in the blank b6e0bb074ffb02d_9
Fixed costs	fill in the blank b6e0bb074ffb02d_10	fill in the blank b6e0bb074ffb02d_11	fill in the blank b6e0bb074ffb02d_12
Profit (Loss)	$fill in the blank b6e0bb074ffb02d_13	$fill in the blank b6e0bb074ffb02d_14	$fill in the blank b6e0bb074ffb02d_15

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

ContinuedDiscontinued