Question
Product Tango has revenue of $194,500, variable cost of goods sold of $113,600, variable selling expenses of $32,000, and fixed costs of $58,600, creating an
Product Tango has revenue of $194,500, variable cost of goods sold of $113,600, variable selling expenses of $32,000, and fixed costs of $58,600, creating an operating loss of $(9,700).
a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.
Differential Analysis | |||
Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2) | |||
February 13 | |||
Continue Product Tango (Alternative 1) | Discontinue Product Tango (Alternative 2) | Differential Effects (Alternative 2) | |
Revenues | $fill in the blank 7a9a5603f037ffa_1 | $fill in the blank 7a9a5603f037ffa_2 | $fill in the blank 7a9a5603f037ffa_3 |
Costs: | |||
Variable cost of goods sold | fill in the blank 7a9a5603f037ffa_4 | fill in the blank 7a9a5603f037ffa_5 | fill in the blank 7a9a5603f037ffa_6 |
Variable selling and admin. expenses | fill in the blank 7a9a5603f037ffa_7 | fill in the blank 7a9a5603f037ffa_8 | fill in the blank 7a9a5603f037ffa_9 |
Fixed costs | fill in the blank 7a9a5603f037ffa_10 | fill in the blank 7a9a5603f037ffa_11 | fill in the blank 7a9a5603f037ffa_12 |
Profit (Loss) | $fill in the blank 7a9a5603f037ffa_13 | $fill in the blank 7a9a5603f037ffa_14 | $fill in the blank 7a9a5603f037ffa_15 |
b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2).
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