a. Prepare a differential analysis to determine the flaw in the general m anager's decision....
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a. Prepare a differential analysis to determine the flaw in the general m anager's decision. Ifan amount is zero, enter "O". Use minus sign to indicate loss. Differentlal Analysis Continue (Altemative 1) or Discontinue (Alternetive 2) Chldren's Shoes Dscortne alden's Shoes Alternetive 2) Connue aldren's Shoes Dfferential Effect on Income # Atermnative 1) Revenues Costs: Varlable cost of goods sold Variable selling and admin. expenses Fond costs Income (Loss) Check My Work For continue and discontinue alternatives subtract the costs from the revenue. Separate variable from foxed costs. Determine the differential effect on income of the revenues,costs, and income (loss) by subtracting alternative 2 from alternative 1. Learning Objective 1. b. What is the faw in the decision to discontinue Children's Shoes, if it is assumed fixed costs would not be materially affected by the discontinuance
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