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Instructions Product AG52 has revenues of $748,000, variable cost of goods sold of $640,000, variable selling expenses of $90,000, and fixed costs of $50,000, creating

Instructions Product AG52 has revenues of $748,000, variable cost of goods sold of $640,000, variable selling expenses of $90,000, and fixed costs of $50,000, creating a loss from operations of $32,000. Required: 1. Prepare a differential analysis as of October 7 to determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required. 2. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2). Labels and Amount Descriptions Label Costs Amount Descriptions Fixed costs Income (loss) Revenues Total costs Variable cost of goods sold Variable selling expenses 1. Prepare a differential analysis as of October 7 to determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required. 1 2 3 4 (Label) 5 6 7 8 Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Product AG52 October 7 Continue Product AG52 (Alternative 1) Discontinue Product AG52 Differential Effect on Income (Alternative 2) (Alternative 2) 2. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2). The company is indifferent since the result is the same regardless of which alternative is chosen. Continued O Discontinuedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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