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  1. business
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  3. discontinue a segment product ag52 has revenues of

Discontinue a Segment Product AG52 has revenues of $193,800, variable cost of goods sold of...

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Question

Accounting

Discontinue a Segment

Product AG52 has revenues of $193,800, variable cost of goods sold of $115,600, variable selling expenses of $33,300, and fixed costs of $59,900, creating a loss from operations of $15,000.

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.

Analysis
Continue (Alt. 1) or Discontinue (Alt. 2) Product AG52
October 7
Continue Product AG52 (Alternative 1) Discontinue Product AG52 (Alternative 2) Differential Effect on Income (Alternative 2)
Revenues $ $
Costs:
Variable cost of goods sold
Variable selling expenses
Fixed costs
Income (Loss) $ $ $

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