Product Tango has a total revenue of $193,000, variable costs of $148,300, and fixed costs of $61,900. This creates a loss of $17,200 Primary Co. is trying to decide whether it should keep or discontinue Product Tango. Prepare a differential analysis to support your decision. Assume fixed costs are unaffected by the decision. (Fill out the chart, and answer question on bottom) Keep Discontinue Revenue 1 of 7 2 of 7 VC - 3 of 7 - Question Blank 4 of 7 CM = Question Blank 5 of 7 = Question Blank 6 of 7 (Keep is the m
Product Tango has a total revenue of $193,000, variable costs of $148,300, and fixed costs of $61,900. This creates a loss of $17,200 Primary Co. is trying to decide whether it should keep or discontinue Product Tango. Prepare a differential analysis to support your decision. Assume fixed costs are unaffected by the decision. (Fill out the chart, and answer question on bottom) Keep Discontinue Revenue 1 of 7 2 of 7 VC - 3 of 7 - Question Blank 4 of 7 CM = Question Blank 5 of 7 = Question Blank 6 of 7 (Keep is the m
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Product Tango has a total revenue of $193,000, variable costs of $148,300, and fixed costs of $61,900. This creates a loss of $17,200 Primary Co. is trying to decide whether it should keep or discontinue Product Tango.
Prepare a differential analysis to support your decision. Assume fixed costs are unaffected by the decision. (Fill out the chart, and answer question on bottom)
| Keep | Discontinue | |
| Revenue | 1 of 7 | 2 of 7 |
| VC | - 3 of 7 | - Question Blank 4 of 7 |
| CM | = Question Blank 5 of 7 | = Question Blank 6 of 7 |
(Keep is the more profitable decision, Both are equally profitable, or Discontinuation is the more profitable situation)
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