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Product Alpha has revenue of $545,000, variable cost of goods sold of $400,000, variable selling expenses of $65,000, and fixed costs of $90,000, creating a
Product Alpha has revenue of $545,000, variable cost of goods sold of $400,000, variable selling expenses of $65,000, and fixed costs of $90,000, creating a loss from operations of $10,000. 1 Continue Product Alpha Discontinue Product Alpha Differential Effect on Income 2 (Alternative 1) $545,000.00 (Alternative 2) $0.00 (Alternative 2) $(545,000.00) 3 Revenues 4 Costs: 5 Variable cost of goods sold $400,000.00 $0.00 $(400,000.00) (65,000.00) 6 Variable selling expenses 65,000.00 0.00 7 Fixed 90,000.00 90,000.00 0.00 8 Total costs $0.00 $0.00 $0.00 9 Income (loss) $10,000.00 $(90,000.00) $0.00
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