Product X has revenue of $94,800, variable cost of goods sold of $61,200, variable selling expenses of $39,700, and fixed costs of $36,000, creating loss from operations of $42,100. Prepare a differential analysis as of May 9 to determine whether to Continue Product X (Alternative 1) or Discontinue Product X (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 X (Alt. 1) or Discontinue Product X (Alt. 2) May 9 Continue Discontinue Differential Product X Product X Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenue Costs: Variable cost of goods sold Variable selling expenses Fixed costs Profit (loss) Determine if Product X should be continued (Alternative 1) or discontinued (Alternative 2).

Product X has revenue of $94,800, variable cost of goods sold of $61,200, variable selling expenses of $39,700, and fixed costs of $36,000, creating loss from operations of $42,100. Prepare a differential analysis as of May 9 to determine whether to Continue Product X (Alternative 1) or Discontinue Product X (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 X (Alt. 1) or Discontinue Product X (Alt. 2) May 9 Continue Discontinue Differential Product X Product X Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenue Costs: Variable cost of goods sold Variable selling expenses Fixed costs Profit (loss) Determine if Product X should be continued (Alternative 1) or discontinued (Alternative 2).

Name: Discontinue a SegmentProduct X has revenue of $94,800, variable cost
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Description: Discontinue a SegmentProduct X has revenue of $94,800, variable cost of goods sold of $61,200, variable selling expenses of $39,700, and fixed costs of $36,000, creating aloss from operations of $42,100.Prepare a differential analysis as of May 9 to

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4E: Differential analysis for a discontinued product The condensed product-line income statement for...

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A manufacturer is considering eliminating a segment because it shows the following $6,300 loss. All $21,100 of its variable costs are avoidable, and $38,500 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A $ 63,300 21,100 42,200 48,500 (6,300) Required B Compute the incomo
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Diff Analysis & Product Pricing:
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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.
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