Discontinue a Segment Product AGS2 has revenues of $194,900, variable cost of goods sold of...
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Discontinue a Segment Product AGS2 has revenues of $194,900, variable cost of goods sold of $116,800, variable selling expenses of $32,100, and fixed costs of $58,800, creating a loss from operations of $12,800. a. Prepare a differential analysis as of October 7 to determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "O' Use a minus sign to indicate a loss Differential Analysis Continue Product AG52 (Alt. 1) or Discontinue Product AGS2 (Alt. 2) October 7 Continue Product AG52 Discontinue Product AG52 Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling expenses Fixed costs Income (Loss) b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2)
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