Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Discontinue a Segment
Product A has revenue of $195,700, variable cost of goods sold of $114,800, variable selling expenses of $31,100, and fixed costs of $60,200, creating a loss
from operations of $10,400.
Prepare a differential analysis as of May 9, to determine whether Product A should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed
costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus
sign.
Differential Analysis
Continue Product A (Alt. 1) or Discontinue Product A (Alt. 2)
May 9
Differential Effect
Discontinue Product
A (Alternative 2)
Continue Product
A (Alternative 1)
on Income
(Alternative 2)
Revenues
Costs:
Variable cost of goods sold
Variable selling expenses
Fixed costs
Continued
Discontinued
ct A should be continued (Alternative 1) or discontinued (Alternative 2)
De
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Transcribed Image Text:Discontinue a Segment Product A has revenue of $195,700, variable cost of goods sold of $114,800, variable selling expenses of $31,100, and fixed costs of $60,200, creating a loss from operations of $10,400. Prepare a differential analysis as of May 9, to determine whether Product A should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue Product A (Alt. 1) or Discontinue Product A (Alt. 2) May 9 Differential Effect Discontinue Product A (Alternative 2) Continue Product A (Alternative 1) on Income (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling expenses Fixed costs Continued Discontinued ct A should be continued (Alternative 1) or discontinued (Alternative 2) De
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