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Product TS-20 has revenue of $103,040, variable cost of goods sold of $51,070, variable selling expenses of $21,890, and fixed costs of $36,440, creating a loss from operations of $6,360.

	Required:
1.	Prepare a 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. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
2.	Determine if Product TS-20 should be continued (Alternative 1) or discontinued (Alternative 2).

Amount Descriptions
Fixed
Income (loss)
Revenue
Total costs
Variable cost of goods sold
Variable selling and administrative expenses

Prepare a 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. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.

Differential Analysis

Continue (Alternative 1) or Discontinue (Alternative 2) Product TS-20

September 12, 2016

1		Continue Product TS-20	Discontinue Product TS-20	Differential Effect on Income
2		(Alternative 1)	(Alternative 2)	(Alternative 2)
3
4	Costs:
5
6
7
8
9

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

Continued

Discontinued

The company is indifferent since the result is the same regardless of which alternative is chosen.

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