FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Product T has revenue of $193,800, variable cost of goods sold of $113,400, variable selling expenses of $32,000, and fixed costs of $60,500, creating a loss from operations of $12,100.
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 a minus sign.
Differential Analysis | |||
Continue Product T (Alt. 1) or Discontinue Product T (Alt. 2) | |||
May 9 | |||
Continue Product T (Alternative 1) |
Discontinue Product T (Alternative 2) |
Differential Effect on Income (Alternative 2) |
|
Revenues | $fill in the blank f95665055014074_1 | $fill in the blank f95665055014074_2 | $fill in the blank f95665055014074_3 |
Costs: | |||
Variable cost of goods sold | fill in the blank f95665055014074_4 | fill in the blank f95665055014074_5 | fill in the blank f95665055014074_6 |
Variable selling expenses | fill in the blank f95665055014074_7 | fill in the blank f95665055014074_8 | fill in the blank f95665055014074_9 |
Fixed costs | fill in the blank f95665055014074_10 | fill in the blank f95665055014074_11 | fill in the blank f95665055014074_12 |
Income (Loss) | $fill in the blank f95665055014074_13 | $fill in the blank f95665055014074_14 | $fill in the blank f95665055014074_15 |
Determine if Product T should be continued (Alternative 1) or discontinued (Alternative 2).
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