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Discontinue a Segment Product X has revenue of $194,100, variable cost of goods sold of $115,400, variable selling expenses of $31,400, and fixed costs
Discontinue a Segment Product X has revenue of $194,100, variable cost of goods sold of $115,400, variable selling expenses of $31,400, and fixed costs of $61,000, creating a loss from operations of $13,700. 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) May 9 Continue Product X Discontinue Product X Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues 194,100 -194,100 Costs: Variable cost of goods sold 115,400 X 115,400 Variable selling expenses 31,400 X 31,400 Fixed costs X 61,000 X Profit (Loss) 13,700 X 0X
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