Question
Product Tango has revenue of $195,500, variable cost of goods sold of $114,400, variable selling expenses of $31,000, and fixed costs of $58,600, creating an
Product Tango has revenue of $195,500, variable cost of goods sold of $114,400, variable selling expenses of $31,000, and fixed costs of $58,600, creating an operating loss of $(8,500).
Question Content Area
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.
Continue Product Tango (Alternative 1) | Discontinue Product Tango (Alternative 2) | Differential Effects (Alternative 2) | |
Revenues | $fill in the blank 90f62809bfb3fa4_1 | $fill in the blank 90f62809bfb3fa4_2 | $fill in the blank 90f62809bfb3fa4_3 |
Costs: | |||
Variable cost of goods sold | fill in the blank 90f62809bfb3fa4_4 | fill in the blank 90f62809bfb3fa4_5 | fill in the blank 90f62809bfb3fa4_6 |
Variable selling and admin. expenses | fill in the blank 90f62809bfb3fa4_7 | fill in the blank 90f62809bfb3fa4_8 | fill in the blank 90f62809bfb3fa4_9 |
Fixed costs | fill in the blank 90f62809bfb3fa4_10 | fill in the blank 90f62809bfb3fa4_11 | fill in the blank 90f62809bfb3fa4_12 |
Profit (Loss) | $fill in the blank 90f62809bfb3fa4_13 | $fill in the blank 90f62809bfb3fa4_14 | $fill in the blank 90f62809bfb3fa4_15 |
Question Content Area
b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2).
ContinuedDiscontinued
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