roduct AG52 has revenues of $194,400, variable cost of goods sold of $114,600, variable selling expenses of $33,100, and fixed costs of $62,000, creating a loss from operations of $15,300. 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 a3aa860a905dfc3_1 $fill in the blank a3aa860a905dfc3_2 $fill in the blank a3aa860a905dfc3_3 Costs: Variable cost of goods sold fill in the blank a3aa860a905dfc3_4 fill in the blank a3aa860a905dfc3_5 fill in the blank a3aa860a905dfc3_6 Variable selling expenses fill in the blank a3aa860a905dfc3_7 fill in the blank a3aa860a905dfc3_8 fill in the blank a3aa860a905dfc3_9 Fixed costs fill in the blank a3aa860a905dfc3_10 fill in the blank a3aa860a905dfc3_11 fill in the blank a3aa860a905dfc3_12 Income (Loss) $fill in the blank a3aa860a905dfc3_13 $fill in the blank a3aa860a905dfc3_14 $fill in the blank a3aa860a905dfc3_15 b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2).
roduct AG52 has revenues of $194,400, variable cost of goods sold of $114,600, variable selling expenses of $33,100, and fixed costs of $62,000, creating a loss from operations of $15,300. 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 a3aa860a905dfc3_1 $fill in the blank a3aa860a905dfc3_2 $fill in the blank a3aa860a905dfc3_3 Costs: Variable cost of goods sold fill in the blank a3aa860a905dfc3_4 fill in the blank a3aa860a905dfc3_5 fill in the blank a3aa860a905dfc3_6 Variable selling expenses fill in the blank a3aa860a905dfc3_7 fill in the blank a3aa860a905dfc3_8 fill in the blank a3aa860a905dfc3_9 Fixed costs fill in the blank a3aa860a905dfc3_10 fill in the blank a3aa860a905dfc3_11 fill in the blank a3aa860a905dfc3_12 Income (Loss) $fill in the blank a3aa860a905dfc3_13 $fill in the blank a3aa860a905dfc3_14 $fill in the blank a3aa860a905dfc3_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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Question
Discontinue a Segment
Product AG52 has revenues of $194,400, variable cost of goods sold of $114,600, variable selling expenses of $33,100, and fixed costs of $62,000, creating a loss from operations of $15,300.
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 a3aa860a905dfc3_1 | $fill in the blank a3aa860a905dfc3_2 | $fill in the blank a3aa860a905dfc3_3 |
Costs: | |||
Variable cost of goods sold | fill in the blank a3aa860a905dfc3_4 | fill in the blank a3aa860a905dfc3_5 | fill in the blank a3aa860a905dfc3_6 |
Variable selling expenses | fill in the blank a3aa860a905dfc3_7 | fill in the blank a3aa860a905dfc3_8 | fill in the blank a3aa860a905dfc3_9 |
Fixed costs | fill in the blank a3aa860a905dfc3_10 | fill in the blank a3aa860a905dfc3_11 | fill in the blank a3aa860a905dfc3_12 |
Income (Loss) | $fill in the blank a3aa860a905dfc3_13 | $fill in the blank a3aa860a905dfc3_14 | $fill in the blank a3aa860a905dfc3_15 |
b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2).
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