Differential Analysis : Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business. To Determine: Whether to continue or discontinue Product AG52.

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…

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Chapter 24, Problem 24.2BE

To determine

Differential Analysis: Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business.

To Determine: Whether to continue or discontinue Product AG52.

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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…

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 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…

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).