Discontinue a Segment Product Tango has revenue of $195,500, variable cost of goods sold of $115,200, variable selling expenses of $31,000, and fixed costs of $60,300, creating an operating loss of $(11,000). 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. Continue Product Tango Revenues Costs: Differential Analysis (Alt. 1) or Discontinue Product Tango (Alt. 2) February 13 Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) Continue Product Tango Discontinue Product Tango (Alternative 1) (Alternative 2) Differential Effects (Alternative 2) b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2).

Discontinue a Segment Product Tango has revenue of $195,500, variable cost of goods sold of $115,200, variable selling expenses of $31,000, and fixed costs of $60,300, creating an operating loss of $(11,000). 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. Continue Product Tango Revenues Costs: Differential Analysis (Alt. 1) or Discontinue Product Tango (Alt. 2) February 13 Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) Continue Product Tango Discontinue Product Tango (Alternative 1) (Alternative 2) Differential Effects (Alternative 2) b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A manufacturer is considering eliminating a segment because it shows the following $6,100 loss. All $20,300 of its variable costs are avoidable, and $36,700 of its fixed costs are avoidable.
Need help with the following incorrect data. Thank You!
Please do not give solution in image format thanku
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
URGENT Show Transcribed Text wwwwww 32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would: a. Decrease net income by $4.000 b. Decrease net income by $4,500. c. Decrease net income by $5,000. d. Decrease net income by $5,500. e. Decrease net income by $6,000. Sictions: On Sales Variable costs Contribution margin Fixed costs Net income Tremaine Inc. has three product lines: A, B, and C. A B a. $10,000 b. $20,000 c. $30,000 d. $40,000 Show Transcribed Text $50,000 30,000 20,000 23.000 $ (3,000) J Accessibility: Investigate C S a. Decrease net income by $5,000 b. Decrease net income by $10,000. c. Decrease net income by $15,000. d. Decrease net income by $20,000. e. Decrease net income by $25,000. a. Decrease net income by $4,000 b. Decrease net income by $4,500. c. Decrease net income by…
Discontinue a Segment Product AG52 has revenues of $193,100, variable cost of goods sold of $115,300, variable selling expenses of $32,100, and fixed costs of $60,400, creating a loss from operations of $14,700. 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 $fill in the blank 90a9a2fd8063fea_1 $fill in the blank 90a9a2fd8063fea_2 $fill in the blank 90a9a2fd8063fea_3 Costs: Variable cost of goods sold fill in the blank 90a9a2fd8063fea_4 fill in the blank 90a9a2fd8063fea_5 fill in the blank…
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. Differential Analysis Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2) February 13 Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) Continue Discontinue Product Product Tango Tango (Alternative 1) (Alternative 2) 0000 Differential Effects (Alternative 2)
The Alligator segment of Wildhorse Specialty Meats is operating at a loss and has the following data: Sales Variable expenses Fixed expenses $7320007 512400 366000 If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company. O $439200 increase. O $36600 decrease. O $36600 increase. O $183000 increase.
Process or Sell Product J19 is produced for $3.36 per gallon. Product J19 can be sold without additional processing for $4.12 per gallon, or processed further into Product R33 at an additional cost of $0.37 per gallon. Product R33 can be sold for $4.44 per gallon. a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate loss. Differential Analysis Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Process Sell Differential Further into Product J19 Effects Product R33 (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit $ Costs, per unit Profit (loss), per unit $ $ b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?
Discontinue a Segment Product Sigma has revenue of $436,000, variable cost of goods sold of $320,000, variable selling expenses of $53,000, and fixed costs of $71,000, creating a loss from operations of $8,000. Prepare a differential analysis as of December 10 to determine whether to Continue Product Sigma (Alternative 1) or Discontinue Product Sigma (Alternative 2), assuming that 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 Sigma (Alt. 1) or Discontinue Product Sigma (Alt. 2) May 9 Continue Discontinue Differential Product Sigma Product Sigma (Alternative 1) (Alternative 2) (Alternative 2) Effects Revenue Costs: Variable cost of goods sold Variable selling expenses Fixed costs Profit (loss) Determine if Product Sigma should be continued (Alternative 1) or discontinued (Alternative 2).
QUESTION 25 A product called Wallaby has revenue of $1,250,000, variable costs of goods sold of $850,000, variable selling expenses of $275,000, and fixed costs of $225,000, creating an operating loss of $(100,000). Using differential analysis, the Company will determine whether product Wallaby should be continued or discontinued, assuming fixed costs are unaffected by the decision. What amount for the variable cost of goods sold should be used in analyzing the alternative to discontinue product Wallaby? $0 O $425,000 This is not a choice. $850,000
Subject-Acounting