Differential Analysis : Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business. To Identify: The flaw in the decision of assuming that fixed costs would not be materially affected by discontinuation of the Children’s shoes.

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Chapter 24, Problem 24.6EX

To determine

Differential Analysis: Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business.

To Identify: The flaw in the decision of assuming that fixed costs would not be materially affected by discontinuation of the Children’s shoes.

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