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please answer all parts SESSION 19 Upd Differential Analysis for a Discontinued Product The condensed product-line Income statement for Rhinebeck Company for the month of
please answer all parts SESSION 19 Upd Differential Analysis for a Discontinued Product The condensed product-line Income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $64,000 $88,800 $27,300 Cost of goods sold (26,900) (32,100) (14,100) Gross profit $37,100 $56,700 $13,200 Selling and administrative expenses (30,400) (35,600) (14,800) Operating income (loss) $6,700 $21,100 $(1,600) Fixed costs are 17% of the cost of goods sold and 44% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "o". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Continue Discontinue Differential Mufflers Mufflers Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues 27,300 27,300 $21,100 Selling and administrative expenses (30,400) (35,600) (14,800) Operating income (los) $6,700 $(1,600) Fixed costs are 17% of the cost of goods sold and 44% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss, Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Continue Discontinue Differential Mufflers Mufflers Effects (Alternative 1) (Alternative 2) (Alternative 2) 27.300 27.300 Costs: Variable cost of goods sold Variable selling and admin, expenses Fixed costs Profit (Loss) Revenues b. Should the Mufflers line be retained
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