Server The ratione per into the AS..The nomen 1335,00 74.100 HO Cum 31,100 de his Only Layout Pagny (Art. 1) chaut Services (Alt > Taka ay at Pembe hehe) S (011) cooter may that the top to the deck Theme th the letter Sales Differential Analysis for a Discontinued Product The condensed product-line Income statement for Dish N Dat Company for the month of March is as follows: Dish N' Dat Company Product-Line Income Statement For the Month Ended March 31 Bowls Plates Cups $64,900 $88,600 $27,900 Cost of goods sold 25,600 32,600 14,900 Gross profit $39,300 $56,000 $13,000 Selling and administrative expenses 30,200 35,600 16,100 Income from operations $9,100 $20,400 $(3,100) Fixed costs are 17% of the cost of goods sold and 42% of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "O". Use a minus sign to Indicate a loss. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups Discontinue Cups Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Selling and administrative expenses 30,200 35,600 16,100 Income from operations $9,100 $20,400 $(3,100) Fixed costs are 17% of the cost of goods sold and 42% of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups Discontinue Cups Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) IS Costs: Variable cost of goods sold Variable selling and admin. expenses Revenues 110 0000 Fixed costs Income (Loss) b. Should the Cups line be retained? Die Anfor Machine Heplacement Kim Kwon Digital Components Company assemblen circuit boards by using a manually operated machine to serdectronic components. The opinal cost of the machines 56.400, the accumulated depreciation 325,400, it remaining see ise years, and its residuale is negible On May 4 of the current year a proposal vina made to replace the present manufacturing procedure with a lety automate machine that has purchase price of 4131900. The autumie machine has an estimated useful life of five years no significant residual value. For use in evaluating the proposal, the accountant actumutatud the following annual a on present and proposed operation Present Proposed Operations Operations Sales 5201.000 1201,000 Direct material $6,500 568,500 Director 47.600 Power and mentenance 4.400 23.500 Thes, Insurance, etc. 1,600 5.300 seling and administrative spent 47,600 67,600 Total expenses 5169.700 514,900 Prepare a differentialysis dated May, to determine whether to continue with the old machine (Alternatives) or replace the old machine (Alternative 2. Prepare the analysis over the fut life of the new machine. If an amount is renter 10 Differential Analysis Continue with Old Machine (At. 1) or Replace Old Machine (Alt. 2) May 4 Conting with Old Machine ReplaceOld Machine Differential Effect on Income (reative 1) Abernative 2) ( Arabive 2) preferente avaldatud May 4 to determine whether to continue the old machine (Alternative 1) or replace the old mache (Alternative 2). Prepare the analysis over the rule of the new machine. If an amount in Differential Analysis Continue with Old Machine (Art. 1) or ReplaceOld Machine (Alt. 2) May Continue with Machine HeplaceOld Machine Differential elect an income (Alternative) (Alternative (Alternative 2) Sales (5 years 1000 LOS Purchase price Direct materiais (5 years Direct labor (years) Power and maintenance 15 years The insurancestr. 5 years Seting and admx 5 years) Income Loss III DllIIl Server The ratione per into the AS..The nomen 1335,00 74.100 HO Cum 31,100 de his Only Layout Pagny (Art. 1) chaut Services (Alt > Taka ay at Pembe hehe) S (011) cooter may that the top to the deck Theme th the letter Sales Differential Analysis for a Discontinued Product The condensed product-line Income statement for Dish N Dat Company for the month of March is as follows: Dish N' Dat Company Product-Line Income Statement For the Month Ended March 31 Bowls Plates Cups $64,900 $88,600 $27,900 Cost of goods sold 25,600 32,600 14,900 Gross profit $39,300 $56,000 $13,000 Selling and administrative expenses 30,200 35,600 16,100 Income from operations $9,100 $20,400 $(3,100) Fixed costs are 17% of the cost of goods sold and 42% of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "O". Use a minus sign to Indicate a loss. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups Discontinue Cups Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Selling and administrative expenses 30,200 35,600 16,100 Income from operations $9,100 $20,400 $(3,100) Fixed costs are 17% of the cost of goods sold and 42% of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups Discontinue Cups Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) IS Costs: Variable cost of goods sold Variable selling and admin. expenses Revenues 110 0000 Fixed costs Income (Loss) b. Should the Cups line be retained? Die Anfor Machine Heplacement Kim Kwon Digital Components Company assemblen circuit boards by using a manually operated machine to serdectronic components. The opinal cost of the machines 56.400, the accumulated depreciation 325,400, it remaining see ise years, and its residuale is negible On May 4 of the current year a proposal vina made to replace the present manufacturing procedure with a lety automate machine that has purchase price of 4131900. The autumie machine has an estimated useful life of five years no significant residual value. For use in evaluating the proposal, the accountant actumutatud the following annual a on present and proposed operation Present Proposed Operations Operations Sales 5201.000 1201,000 Direct material $6,500 568,500 Director 47.600 Power and mentenance 4.400 23.500 Thes, Insurance, etc. 1,600 5.300 seling and administrative spent 47,600 67,600 Total expenses 5169.700 514,900 Prepare a differentialysis dated May, to determine whether to continue with the old machine (Alternatives) or replace the old machine (Alternative 2. Prepare the analysis over the fut life of the new machine. If an amount is renter 10 Differential Analysis Continue with Old Machine (At. 1) or Replace Old Machine (Alt. 2) May 4 Conting with Old Machine ReplaceOld Machine Differential Effect on Income (reative 1) Abernative 2) ( Arabive 2) preferente avaldatud May 4 to determine whether to continue the old machine (Alternative 1) or replace the old mache (Alternative 2). Prepare the analysis over the rule of the new machine. If an amount in Differential Analysis Continue with Old Machine (Art. 1) or ReplaceOld Machine (Alt. 2) May Continue with Machine HeplaceOld Machine Differential elect an income (Alternative) (Alternative (Alternative 2) Sales (5 years 1000 LOS Purchase price Direct materiais (5 years Direct labor (years) Power and maintenance 15 years The insurancestr. 5 years Seting and admx 5 years) Income Loss III DllIIl