Product TS-20 has revenue of $102,190, variable cost of goods sold of $51,100, variable selling expenses of $21,460, and fixed costs of $35,260, creating a loss from operations of $5,630.

Required:

1.

Using the information given, complete the differential analysis as of September 12 to determine if Product TS-20 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.

2.

Determine if Product TS-20 should be continued (Alternative 1) or discontinued (Alternative 2).

	Continue Product TS-20	Discontinue Product TS-20	Differential Effect on Income
	Alternative 1	Alternative 2	Alternative 2
Revenue	102,190.00	0.00	-102,190.00
Costs:
Variable cost of goods sold		0.00
Fixed	-35,260.00	-35,260.00	0.00
Variable selling and administrative expenses
Total costs
Income (loss)