X MyLMU - Secure - Loyo X B Final Exam - Spring 202 x CengageNOWv2 | Onlin X G Diamond Boot Factory X + keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false G Calculator Product J is one of the many products manufactured and sold by Oceanside Company. An income statement by product line for the past year indicated a net profit for Product J of $2,750. This net profit resulted from sales of $275,000, cost of goods sold of $186,500, and operating expenses of $85,750. It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 40% of the operating expense is fixed. If Product ] 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 decline significantly if Product J is discontinued. Prepare a differential analysis report dated February 8 of the current year. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Product ] February 8 Continue Discontinue Differential Product J Product J Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Utilities expense Variable operating expenses Fixed operating expenses Profit (loss) Should the company continue or discontinue producing Product J? Previous Next All work saved. Save and Exit Submit Test for Grading F5 F6 F7 DII F8 DD F10 F11 F12 % &Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Product ] February 8 Continue Discontinue Differential Product J Product ] Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues V 275,000 -275,000 Costs: Variable cost of goods sold -130,550 0 130,550 Fixed operating expenses x -55,950 X -55,950 X 0 X Variable operating expenses x -51,450 X 0 X 51,450 X Fixed operating expenses V -34,300 -34,300 0 Profit (loss) 2,750 -90,250 -93,000