
Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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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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Discontinue a Segment
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Prepare a differential analysis as of May 9 to determine whether to Continue Product X (Alternative 1) or Discontinue Product X (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 X (Alt. 1) or Discontinue Product X (Alt. 2)
May 9
Contine
Discontinue
Differential
Product X
Product X
Effects
(Alternative 1)
(Alternative 2)
(Alternative 2)
Revenue
$
$
$
Costs:
------------------
------------------
----------------
Variable cost of goods sold
Variable selling expenses
Fixed costs
Profit (loss)
$
$
$
Determine if Product X should be continued…
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Discontinue a Segment
Product X has revenue of $94,800, variable cost of goods sold of $61,200, variable selling expenses of $39,700, and fixed costs of $36,000, creating a loss from operations of $42,100.
Prepare a differential analysis as of May 9 to determine whether to Continue Product X (Alternative 1) or Discontinue Product X (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 X (Alt. 1) or Discontinue Product X (Alt. 2)
May 9
ContinueProduct X(Alternative 1)
DiscontinueProduct X(Alternative 2)
DifferentialEffects(Alternative 2)
Revenue
Costs:
Variable cost of goods sold
Variable selling expenses
Fixed costs
Profit (loss)
Determine if Product X should be continued (Alternative 1) or discontinued (Alternative 2).
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Prepare a differential analysis as of May 9 to determine whether Product B 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.
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Differential Analysis
Continue Product AG52 (Alt. 1) or Discontinue Product AG52 (Alt. 2)
October 7
Continue Product AG52 (Alternative 1)
Discontinue Product AG52 (Alternative 2)
Differential Effect on Income (Alternative 2)
Revenues
$fill in the blank 14650f02dfdc057_1
$fill in the blank 14650f02dfdc057_2
$fill in the blank 14650f02dfdc057_3
Costs:
Variable cost of goods sold
fill in the blank 14650f02dfdc057_4
fill in the blank 14650f02dfdc057_5
fill in the blank…
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Prepare and show in solution a differential analysis as of May 9 todetermine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.
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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 "0". Use a minus sign to indicate a loss.
Differential Analysis
Continue Product AG52 (Alt. 1) or Discontinue Product AG52 (Alt. 2)
October 7
Continue Product AG52 (Alternative 1)
Discontinue Product AG52 (Alternative 2)
Differential Effect on Income (Alternative 2)
Revenues
$fill in the blank 1c1f21f34fb4f8c_1
$fill in the blank 1c1f21f34fb4f8c_2
$fill in the blank 1c1f21f34fb4f8c_3
Costs:
Variable cost of goods sold
fill in the blank 1c1f21f34fb4f8c_4
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fill in the blank 1c1f21f34fb4f8c_6
Variable selling…
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Differential Analysis
Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2)
February 13
ContinueProductTango(Alternative 1)
DiscontinueProductTango(Alternative 2)
DifferentialEffects(Alternative 2)
Revenues
$fill in the blank 6c51bc020070005_1
$fill in the blank 6c51bc020070005_2
$fill in the blank 6c51bc020070005_3
Costs:
Variable cost of goods sold
fill in the blank 6c51bc020070005_4
fill in the blank 6c51bc020070005_5
fill in the blank 6c51bc020070005_6
Variable…
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