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

Question
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
View transcribed image text
Expand

Expert Answer

1 Rating

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: alice is a planning to attend several professional events and will purchase a suit costing between $...

A: Ethical dilemma: Ethical dilemma refers to the problem that lies in the process of decision making b...

Q: Bramble Corp. has a weighted-average unit contribution margin of $30 for its two products Standard a...

A: Formula to compute the net income.

Q: On August 1, Wilshire Company borrowed $150,000 from People's National Bank on a 1-year, 8% note. Re...

A: Note payable: Note payable is a form of promissory note which is provided by the lender to the borro...

Q: Yolanda is a cash basis taxpayer with the following transactions during the year: Cash receiv...

A: Business income:The income that is realized from the result of business activity is referred to as t...

Q: Please solve the following then explain in steps how you solved the problem Revenue  for 2028 ???? D...

A: Statement of Retained Earning is a financial statement that represents the changes to the retained e...

Q: Please solve the following and explain in steps how you solved the calculation. Revenue for 2028 $80...

A: Calculate ending balance of  retained earnings:

Q: How much must I deposit into an account every month to have $1,500,000 in 15 years at a rate of 7% c...

A: A recurring deposit is a special type of term deposit offered by banks which help people with regula...

Q: Munoz Corporation incurs the following annual fixed costs: Item Cost $ 62,000 Depreciation Officers'...

A: In order to compute the fixed cost per unit, the total annual fixed cost needs to be determined. The...

Q: San De Marco Company has a very unique product with no real competitors, therefore they use cost plu...

A: Cost plus pricing is a method of setting selling price where, selling price is set by adding a marku...

Q: Arley's Baker makes fat-free cookies that cost $1.50 each. Arley expects 15% of the cookies to fall ...

A: Markup price refers to the price difference in between the selling price of the product and its cost...

Q: how would I find the difference between net operating income if the project is eliminated?

A: Keep or drop decision: Keep or drop decision includes whether a company should keep a product line o...

Q: The Blossom Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on...

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for you...

Q: A machine that cost $100,000 has an estimated residual value of $10,000 and an estimated useful life...

A: Calculate the depreciation expense per machine hour.

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 12 -- CURR...

A:  1. Required journal entry:

Q: E7-7 (Statement of Revenues, Expenditures, and Changes in Fund Balance) Prepare a statement of reven...

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of ...

Q: A model NASCAR race car can list for $79.99 with a trade discount of 40%. What is the net price of t...

A: Trade discount represent discount on retail price.

Q: Support department cost allocation—direct method Becker Tabletops has two support departments (Janit...

A: Hence, the Janitorial department cost which is allocated to cutting department costs is $58,000. The...

Q: Yolanda is a cash basis taxpayer with the following transactions during the year: Cash received from...

A: Compute Yolanda\'s income from business:

Q: Shadee Corp. expects to sell 640 sun visors in May and 350 in June. Each visor sells for $25. Shadee...

A: The income statement is a financial statement that represents the financial performance of the compa...

Q: What do the following account types fall under DR or CR and under what part of the accounting equati...

A: Assets are increased with Debit when they are acquired and for decreasing any asset, they need to be...

Q: In the month of April, Carly's Carwash provided 3,000 car washes at an average price of $25. Fixed c...

A: Meaning of Margin of Safety:Margin of Safety is an excess of actual or budgeted sales over the break...

Q: Concord Corporation has a weighted-average unit contribution margin of $30 for its two products, Sta...

A: The break-even point sales in units has been calculated by dividing fixed cost with weighted average...

Q: Problem 9-97BEntries for and Financial Statement Presentation of a Note Griddley Company borrowed $2...

A: Click to see the answer

Q: Target ROI is 17% Invested Capital is $513,941 Full Cost per unit $1,570 Expected sales volume is 93...

A: Return on Investment is computed by dividing the net profit by the total investment. 

Q: Issuance of Long-Term Debt Anne Corp. issued $366,000, 5% bonds. Required: Provide the necessary jou...

A: Click to see the answer

Q: Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transporta...

A: a.Compute the break-even number of seats sold on a single round-trip flight for the overall enterpri...

Q: How do you find the trade discount and net price of an item if the list price is $199, the chain dis...

A: Calculate the trade discount.

Q: Does egg-producing chickens go on the balance sheet as inventory or as property, plant, and equipmen...

A: In poultry accounting, egg producing chicken are considered inventory as current assets and not long...

Q: Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absor...

A: a. Calculate the cost of finished goods inventory under absorption costing concept.

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 12 -- CURR...

A: 1.Prepare journal entry to record the payroll of Hotel Properties, Inc. on February 15, 20x1.

Q: During 2019, Basler Manufacturing produced 60,000 units and sold 55,000 for $10 per unit. Variable m...

A: Variable costing income statement.Variable costing income statement refers to an income statement th...

Q: If Morton Company expects to sell VCR's at $100 a unit with variable costs of $60 per unit and DVD's...

A: Definition of Weighted Average Contribution Margin:Average contribution margin that is weighted to r...

Q: The following information relates to a computer shop owner who makes all purchases on credit:       ...

A: Calculate the amount of total sales:

Q: Casual Fashions had sales of $280,000. Operating expenses were $65,000 and alterations were $400. Pl...

A: The initial markup is stated as the markup needed on all items to make sure that cost of all the pro...

Q: Journal Entries for Payment of Employer Payroll Taxes Jason Chen owns a business called Chen Home Bu...

A: Record journal entry for payment of employee federal income tax, social security and Medicare taxes ...

Q: June 1   Purchased books on account for $2,580 (including freight) from Catlin Publishers, terms 2/1...

A: Prepare the journal entry from June 1 to June 17.

Q: Break-Even Sales Currently, the unit selling price of a product is $290, the unit variable cost is $...

A: Calculate break-even point in units.

Q: roger owns a bicycle shop. once a week he and a group of friends rent the gym of the local club to p...

A: Roger is being unethical in his conduct for the reasons mentioned below: Roger is collecting cash fr...

Q: A hotel has experienced the following financial results:  Income before non-operating income and ex...

A: a.Determine the amount of non-operating expense.

Q: Waterway Company uses a periodic inventory system. For April, when the company sold 650 units, the f...

A: To ascertain the weighted average cost per unit the Cost of goods available for sale are divided by ...

Q: Please solve and explain in steps how you came to your answer. Revenues for 2028 $5000 Dividends dec...

A: Statement of Retained Earning is a financial statement that represents the changes to the retained e...

Q: Question pinned below please answer all parts

A: A perpetual inventory framework is a technique for following and recording stock and expenses of pro...

Q: Neyman Inc. has the following data for purchases and sales of inventory: Date Units Cost per Unit...

A: Cost of goods sold includes all the direct cost of a product that are incurred in its production.Cos...

Q: Exercise 8-08 On March 3, Metlock, Inc. sells $719,600 of its receivables to Western Factors Inc. W...

A: Receivables: Receivables refer to an amount to be received in future. General classifications of rec...

Q: Pasadenas starts a business on the 1 June 20x8, introducing the following assets:                   ...

A: Calculate the amount of net profit:

Q: Support Department Cost Allocation—Direct Method Christmas Timber, Inc., produces Christmas trees. T...

A: Cost allocation:Cost allocation refers to the process of allocating the cost associated with the pro...

Q: Lankford Corporation operates a retail computer store. To improve delivery services to customers, th...

A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is, a...

Q: Crane Company has two divisions-Standard and Premium. Each division has hundreds of different types ...

A: In the given equation, combined contribution margin ratio has been calculated by dividing total sale...

Q: All parts of question 3 Quality Improvement and Profitability Objective Gagnon Company reported the ...

A: 1. Calculation of quality cost: Results of formulas used in excel sheet is as follows: Calculation o...

Q: Company sells products to its cusotmers on credit basis, adjusting entry for bad debt expense is rec...

A: Bad Debts Expense:Bad debts expense as also known as uncollectible account expense or doubtful accou...

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