Discontinue a Segment

Product X has revenue of $195,700, variable cost of goods sold of $113,900, variable selling expenses of $34,000, and fixed costs of $58,700, creating a loss from operations of $10,900.

Question Content Area

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 (Alternative 1)	Discontinue Product X (Alternative 2)	Differential Effects (Alternative 2)
Revenues	$fill in the blank 0de085037042035_1	$fill in the blank 0de085037042035_2	$fill in the blank 0de085037042035_3
Costs:
Variable cost of goods sold	fill in the blank 0de085037042035_4	fill in the blank 0de085037042035_5	fill in the blank 0de085037042035_6
Variable selling expenses	fill in the blank 0de085037042035_7	fill in the blank 0de085037042035_8	fill in the blank 0de085037042035_9
Fixed costs	fill in the blank 0de085037042035_10	fill in the blank 0de085037042035_11	fill in the blank 0de085037042035_12
Profit (Loss)	$fill in the blank 0de085037042035_13	$fill in the blank 0de085037042035_14	$fill in the blank 0de085037042035_15

Question Content Area

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