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please include rhe alternative chart. it was not provided in a previous posting with that of requirement 40. Product Line Decision. The following monthly segmented
please include rhe alternative chart. it was not provided in a previous posting
with that of requirement 40. Product Line Decision. The following monthly segmented income statement is for South Side LLC. Product Lines B Total Sales revenue Variable costs Contribution margin Direct fixed costs Allocated fixed costs Profit (loss) $37,500 16,000 $21,500 19,500 3.750 $(1,750) $50,000 27,500 $ 22,500 16,000 5,000 $ 1,500 $12,500 5,000 $ 7,500 3,500 $100,000 48,500 $ 51,500 39,000 10,000 $ 2,500 1.250 $ 2,750 Management is concerned about the losses associated with product line A and is considering dropping this product line. Allocated fixed costs are assigned to product lines based on sales. If product line Ais eliminated, total allocated fixed costs are assigned to the remaining product lines, and all variable and direct fixed costs for product line A will be eliminated. Required: a. Perform differential analysis using the format presented in Figure 7.6. Assume keeping all product lines is Alternative 1, and dropping product line A is Alternative 2. b. Which alternative is best? Explain. C. Summarize the result of dropping product line A using the format presented in Figure 7.7. d. Explain why the loss shown for product line A in the segmented income statement might be misleading to management 41. Customer Decision. The following customer segmented quarterly income statement is for Cortez Law Services LLC ste BIU - AE Merge & Center [Copy Format Painter Clipboard Alignment Font 7 fx M D G Differential Analysis (Drop product line A) (Keep all product lines) Alternative 1 Total Alternative 2 Total Differentia Amount Alternative 1 is: Sales revenue Variable costs Contribution margin Direct fixed costs Allocated fixed costs Profit $ 2.000 Higher b. Provide your answer in the text box below Step by Step Solution
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