NEED HELP? MY COURSES Nellise Malcolm 4f his is a question and answer forum. In

ID: 2429877 • Letter: N

Question

NEED HELP? MY COURSES Nellise Malcolm 4f his is a question and answer forum. In order to see other responses to these questions, you must first post your answer Differential Income or Loss by Karen Mozingo-Tuesday, May 15, 2018, 9:55 PM Crane Company Division B recorded sales of $360,000, variable cost of goods sold of $315,000, variable selling expenses of $13,000, and fixed costs of $61,000; creating a loss from operations of $29,000. 1) Determine the differential income or loss from the sales of Division B 2) Should this division be discontinued? Explain your answer. A yes/no answers are not an adequate response. Respond to at least two of your classmates post. Let them know why or why you do not agree with their conclusions In this post you will not see your other classmates post until you have posted your answer. In order to see your class es post you must respond to this post. There may be a delay between your post and you being able to see n me :17 PM

Explanation / Answer

Answer:

(a)

Particular

Amount $

Differential revenue

$360,000

Less: Differential Cost

variable cost of goods sold

315,000

variable Selling expanses

$13,000

Total variable cost

$328,000

Annual Differential Income from sale of division B

$32,000

Note:

Here we should not considered the fixed cost but only we should consider the variable cost associated with sale of division b to get the differential revenue

(B)

division B should not be discontinued

Explanation

As the Differential Income from sale of division B is positive so company should not discontinued division B