Discontinue a Segment Product T has revenue of $193,900, variable cost of goods sold of...
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Accounting
Discontinue a Segment
Product T has revenue of $193,900, variable cost of goods sold of $113,500, variable selling expenses of $33,700, and fixed costs of $59,300, creating a loss from operations of $12,600.
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Prepare a differential analysis as of September 12, 2014, to determine if Product T should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter zero "0".
Differential Analysis
Continue Product T (Alt. 1) or Discontinue Product T (Alt. 2)
September 12, 2014
Continue Product T (Alternative 1)
Discontinue Product T (Alternative 2)
Differential Effect on Income (Alternative 2)
Revenues
$
Correct 8 of Item 1
$
Correct 9 of Item 1
$
Correct 10 of Item 1
Costs:
Variable cost of goods sold
Correct 13 of Item 1
Correct 14 of Item 1
Correct 15 of Item 1
Variable selling and admin. expenses
Correct 17 of Item 1
Correct 18 of Item 1
Correct 19 of Item 1
Fixed costs
Correct 21 of Item 1
Correct 22 of Item 1
Correct 23 of Item 1
Income (Loss)
$
Correct 25 of Item 1
$
Correct 26 of Item 1
$
Correct 27 of Item 1
Determine if Product T should be continued (Alternative 1) or discontinued (Alternative 2). SelectContinuedDiscontinuedCorrect 1 of Item 2
Answer & Explanation
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