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. Whether to continue or discontinue Product TS-20.

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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…

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Chapter 25, Problem 25.2APE

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.

Whether to continue or discontinue Product TS-20.

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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).

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