Discontinue a Segment Product AG52 has revenues of $195,100, variable cost of goods sold of $114,900, variable selling expenses of $31,700, and fixed costs of $58,700, creating a loss from operations...




Discontinue a Segment


Product AG52 has revenues of $195,100, variable cost of goods sold of $114,900, variable selling expenses of $31,700, and fixed costs of $58,700, creating a loss from operations of $10,200.










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$fill in the blank b5e04dfb8f9bf83_1$fill in the blank b5e04dfb8f9bf83_2$fill in the blank b5e04dfb8f9bf83_3
Costs:
Variable cost of goods soldfill in the blank b5e04dfb8f9bf83_4fill in the blank b5e04dfb8f9bf83_5fill in the blank b5e04dfb8f9bf83_6
Variable selling expensesfill in the blank b5e04dfb8f9bf83_7fill in the blank b5e04dfb8f9bf83_8fill in the blank b5e04dfb8f9bf83_9
Fixed costsfill in the blank b5e04dfb8f9bf83_10fill in the blank b5e04dfb8f9bf83_11fill in the blank b5e04dfb8f9bf83_12
Income (Loss)$fill in the blank b5e04dfb8f9bf83_13$fill in the blank b5e04dfb8f9bf83_14$fill in the blank b5e04dfb8f9bf83_15











b.Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2).








Jun 09, 2022
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