On the proposal to discontinue prosuct fabulous

I Exam Part 2 DIAN DUBAI MYCUD Q Hassan Ali Jassim Abdulla Ahmad Salman adian education The product Fabulous is one of the many products manufactured and sold by Fashion Inc. An income statement by product line for the last year indicated a net loss for Product Fabulous of Dh147,000. This net loss resulted from sales of Dh3,120,000, the cost of goods sold of Dh2,238,000, and operating expenses of Dh1,029,000. It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 40% of the operating expense is fixed. If Product Fabulous is retained, the revenue, costs, and expenses are not expected to change significantly from those of the current year. Because of the large number of products manufactured, the total fixed costs and expenses are not expected to decline significantly if Product Fabulous is discontinued. Required: Prepare a differential analysis report, dated March /29 /2020 of the current year, on the proposal to discontinue Product Fabulous. 20-ACT 112-1 Review 2019000/728 | 20190007 728@students.cud.ac.ae progress | 3:22 attempt