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Product J is one of the many products manufactured and sold by Oceanside Comparly. An income statement by product line for the past year indicated

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Product J is one of the many products manufactured and sold by Oceanside Comparly. An income statement by product line for the past year indicated a net loss for Product 1 of $12,250. This net loss resulted from sales of $260,000, cost of goods sold of 5186,500 , and operating expenses of 585,750 . It Is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 40% of the operatirig expenses is fixed. If Preduct 1 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 deciline significantly if Product. 3 is discontinued. Prepare a differential analysis report; dated February: 8 of the current year, on the proposal to discontinue Product J. If an-amount isizero, enter "0". Differential Analysis

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