Product AG52 has revenues of $748,000, variable cost of goods sold of $640,000, variable selling expenses of $90,000, and fixed costs of $50,000, creating a loss from operations of $32,000. 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. Revenues Costs: Variable cost of goods sold Variable selling expenses Fixed costs Income (Loss) Differential 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) b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2).

Product AG52 has revenues of $748,000, variable cost of goods sold of $640,000, variable selling expenses of $90,000, and fixed costs of $50,000, creating a loss from operations of $32,000. 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. Revenues Costs: Variable cost of goods sold Variable selling expenses Fixed costs Income (Loss) Differential 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) b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2).

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter25: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 2BE

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