Discontinue a Segment
Product AG52 has revenues of $195,700, variable cost of goods sold of $115,300, variable selling expenses of $32,800, and fixed costs of $60,600, creating a loss from operations of $13,000.
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.
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 | $ | $ | $ |
Costs: | |||
Variable cost of goods sold | |||
Variable selling expenses | |||
Fixed costs | |||
Income (Loss) | $ | $ | $ |
b. Determine if Product AG52 should be
continued (Alternative 1) or discontinued (Alternative
2).
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 | $195700 | $ | -195700 |
Costs: | |||
Variable cost of goods sold | -115300 | 0 | 115300 |
Variable selling expenses | -32800 | 0 | 32800 |
Fixed costs | -60600 | -60600 | 0 |
Income (Loss) | -13000 | -60600 | -47600 |
b. Determine if Product AG52 should be continued
Yes product should be continue
Discontinue a Segment Product AG52 has revenues of $195,700, variable cost of goods sold of $115,300,...
Discontinue a Segment Product AG52 has revenues of $194,300, variable cost of goods sold of $113,600, variable selling expenses of $32,700, and fixed costs of $58,000, creating a loss from operations of $10,000 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 "O". Use a minus sign to indicate a loss Differential...
Discontinue a Segment Product Tango has revenue of $193,300, variable cost of goods sold of $114,600, variable selling expenses of 533,800, and fixed costs of $59,000, creating an operating loss of $(14,100). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "O". If required, use a minus sign to indicate a loss....
Discontinue a Segment Product Tango has revenue of $1,150,000, variable cost of goods sold of $850,000, variable selling expenses of $275,000, and fixed costs of $125,000, creating an operating loss of $(100,000). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss....
Discontinue a Segment Product Tango has revenue of $195,400, variable cost of goods sold of $114,400, variable selling expenses of $32,500, and fixed costs of $60,200, creating an operating loss of $(11,700). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss....
Discontinue a Segment Product T has revenue of $194,600, variable cost of goods sold of $115,500, variable selling expenses of $32,200, and fixed costs of $58,800, creating a loss from operations of $11,900 Prepare a differential analysis as of May 9, to determine whether Product T should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "O". For those boxes in which you must enter subtracted or...
Discontinue a Segment Product AG52 has revenues of $195,200, variable cost of goods sold of $115,200, variable selling expenses of $33,000, and fixed costs of $61.500, creating a loss from operations of $14,500. a. Prepare a differential analysis as of October 7 to determine if Product AGS52 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.
Product T has revenue of $193,300, variable cost of goods sold of $113,200, variable selling expenses of $32,000, and fixed costs of $59,600, creating a loss from operations of $11,500. Prepare a differential analysis as of May 9, to determine whether Product T should be continued (Alternative 1) or discontinued (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...
25-2 Practice Exercises eBook Show Me How Calculator Discontinue a Segment Product T has revenue of $ 193,300, variable cost of goods sold of $114,900, variable selling expenses of $31,600, and fixed costs of $58,800, creating a loss from operations of $12,000. Prepare a differential analysis as of May 9, to determine whether Product T should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter 'o'. For...
eBook Show Me How Calculator Discontinue a Segment Product T has revenue of $195,900, variable cost of goods sold of $114,800, variable selling expenses of $32,600, and fixed costs of $61,800, creating a loss from operation $13,300 Prepare a differential analysis as of May 9, to determine whether Product T should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are una by the decision. If an amount is zero, enter "O". For those boxes in which you...
Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $71,000 $105,700 $45,000 Cost of goods sold (32,600) (42,300) (27,000) $38,400 $18,000 Gross profit Selling and administrative expenses $63,400 (42,800) $20,600 (27,400) $11,000 (25,000) Operating income (loss) $(7,000) Fixed costs are 20% of the cost of goods sold and 30% of the selling...