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Discontinue a Segment

Product AG52 has revenues of $193,000, variable cost of goods sold of $113,700, variable selling expenses of $31,700, and fixed costs of $58,200, creating a loss from operations of $10,600.

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 1a576109103cfd7_1	$fill in the blank 1a576109103cfd7_2	$fill in the blank 1a576109103cfd7_3
Costs:
Variable cost of goods sold	fill in the blank 1a576109103cfd7_4	fill in the blank 1a576109103cfd7_5	fill in the blank 1a576109103cfd7_6
Variable selling expenses	fill in the blank 1a576109103cfd7_7	fill in the blank 1a576109103cfd7_8	fill in the blank 1a576109103cfd7_9
Fixed costs	fill in the blank 1a576109103cfd7_10	fill in the blank 1a576109103cfd7_11	fill in the blank 1a576109103cfd7_12
Income (Loss)	$fill in the blank 1a576109103cfd7_13	$fill in the blank 1a576109103cfd7_14	$fill in the blank 1a576109103cfd7_15

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

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