Answer the following question (1), then fill in table (2).   1. After reviewing your work on the Continue/Discontinue panel, should WoolCorp continue (Alternative 1) or discontinue (Alternative 2) the rug yarn product line?   A. Continue (Alternative 1) B. Discontinue (Alternative 2) C. The company is indifferent between Alternative 1 and Alternative 2.   2. The following table shows several business decisions that might need to be made across the top row. Along the left-hand column, there are important factors to consider.   Choose the factor(s) that are important to the decision. Check all that apply. If the factor is not important to any of the decisions, check the “Not Important” box.

Please answer questions #2-7, Thank you!! :)   Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 90,450 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows: Sales     $4,341,600 Cost of goods sold     2,144,000 Gross profit     $2,197,600 Expenses:       Selling expenses $1,072,000     Administrative expenses 1,072,000     Total expenses     2,144,000 Income from operations     $53,600 The division of costs between fixed and variable is as follows:   Variable Fixed Cost of goods sold 70%   30%   Selling expenses 75%   25%   Administrative expenses 50%   50%   Management is considering a plant expansion program that will permit an increase of $384,000 in yearly sales. The expansion will increase fixed costs by $38,400, but will not affect the relationship between sales and…

Differential Analysis for a Discontinued Product A condensed income statement by product line for Lavonia Beverage Inc. indicated the following for Vim Cola for the past year: Line Item Description Amount Sales $237,700  Cost of goods sold (110,000) Gross profit $127,700  Operating expenses (144,000) Operating loss $(16,300) It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Because Vim Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. Question Content Area a.  Prepare a differential analysis dated November 2 to determine whether Vim Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential AnalysisContinue (Alt. 1) or Discontinue (Alt. 2) Vim ColaNovember 2 Line Item Description ContinueVim…

Applying Differential Analysis to Profitability Scenarios Assume that Company A and Company B sell a microwave popcorn popper for $20. Although the companies have different cost structures, both companies currently show a profit of $21,000 based on sales of 14,000 units as shown in the following financial statements for the month of June. Both companies hold no inventory and sell contractual orders in the month.   For the Month of June Company A Company B Sales ($20) $280,000 $280,000 Variable cost of goods sold ($5.00, 7.50, Company A and B, respectively) 70,000 105,000 Variable selling and administrative costs ($2.00, $4.00, Company A and B, respectively) 28,000 56,000 Contribution margin 182,000 119,000 Fixed cost of goods sold 105,000 70,000 Fixed selling and administrative costs 56,000 28,000 Profits Before-Tax $21,000 $21,000 For each company, determine the impact on monthly profit using differential analysis for each of the following separate scenarios.1.…