Discontinue a Segment Product AG52 has revenues of $194,700, variable cost of goods sold of $115,500, variable selling expenses of $31,100, and fixed costs of $59,300, creating a loss from operations of $11,200. 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 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 14650f02dfdc057_6 Variable selling expenses fill in the blank 14650f02dfdc057_7 fill in the blank 14650f02dfdc057_8 fill in the blank 14650f02dfdc057_9 Fixed costs fill in the blank 14650f02dfdc057_10 fill in the blank 14650f02dfdc057_11 fill in the blank 14650f02dfdc057_12 Income (Loss) $fill in the blank 14650f02dfdc057_13 $fill in the blank 14650f02dfdc057_14 $fill in the blank 14650f02dfdc057_15 b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2).
Discontinue a Segment Product AG52 has revenues of $194,700, variable cost of goods sold of $115,500, variable selling expenses of $31,100, and fixed costs of $59,300, creating a loss from operations of $11,200. 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 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 14650f02dfdc057_6 Variable selling expenses fill in the blank 14650f02dfdc057_7 fill in the blank 14650f02dfdc057_8 fill in the blank 14650f02dfdc057_9 Fixed costs fill in the blank 14650f02dfdc057_10 fill in the blank 14650f02dfdc057_11 fill in the blank 14650f02dfdc057_12 Income (Loss) $fill in the blank 14650f02dfdc057_13 $fill in the blank 14650f02dfdc057_14 $fill in the blank 14650f02dfdc057_15 b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2).
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter25: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 2BE
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Discontinue a Segment
Product AG52 has revenues of $194,700, variable cost of goods sold of $115,500, variable selling expenses of $31,100, and fixed costs of $59,300, creating a loss from operations of $11,200.
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 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 14650f02dfdc057_6 |
Variable selling expenses | fill in the blank 14650f02dfdc057_7 | fill in the blank 14650f02dfdc057_8 | fill in the blank 14650f02dfdc057_9 |
Fixed costs | fill in the blank 14650f02dfdc057_10 | fill in the blank 14650f02dfdc057_11 | fill in the blank 14650f02dfdc057_12 |
Income (Loss) | $fill in the blank 14650f02dfdc057_13 | $fill in the blank 14650f02dfdc057_14 | $fill in the blank 14650f02dfdc057_15 |
b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2).
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