Discontinue a SegmentProduct Tango has revenue of $195,500, variable cost of goods sold of $114,300, variable selling expenses of $33,100, and fixed costs of $60,100, creating an operatingloss of $(12,000).a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costsare unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.Differential AnalysisContinue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2)February 13DiscontinueProductContinueDifferentialProductEffectsTangoTango(Alternative 1) (Alternative 2)(Alternative 2)RevenuesCosts:Variable cost of goods soldVariable selling and admin. expensesFixed costsProfit (Loss)$b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2).

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Description: Discontinue a SegmentProduct Tango has revenue of $195,500, variable cost of goods sold of $114,300, variable selling expenses of $33,100, and fixed costs of $60,100, creating an operatingloss of $(12,000).a. Prepare a differential analysis as of Fe

Differential analysis is used to evaluate the current position of the business. which business can…

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Product Tango has revenue of $195,500, variable cost of goods sold of $114,300, variable selling expenses of $33,100, and fixed costs of $60,100, creating an operating loss of $(12,000). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed cost are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate loss. Differential Analysis Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2) February 13 Continue Discontinue Differential Product Product Effects Tango (Alternative 1) (Alternative 2) Tango (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) $ b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2).

Product Tango has revenue of $195,500, variable cost of goods sold of $114,300, variable selling expenses of $33,100, and fixed costs of $60,100, creating an operating loss of $(12,000). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed cost are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate loss. Differential Analysis Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2) February 13 Continue Discontinue Differential Product Product Effects Tango (Alternative 1) (Alternative 2) Tango (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) $ b. Determine if Product Tango 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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