Product A has revenue of $195,000, variable cost of goods sold of $116,300, vari
ID: 2465349 • Letter: P
Question
Product A has revenue of $195,000, variable cost of goods sold of $116,300, variable selling expenses of $32,600, and fixed costs of $61,900, creating a loss from operations of $15,800. Prepare a differential analysis as of September 12, 2014, to determine if Product A should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter zero "0". Determine if Product A should be continued (Alternative 1) or discontinued (Alternative 2).Explanation / Answer
REVENUE 195000 0
-cost
-variable cost of good sold 116300 116300
variable selling and admin exp 32600 0
fixed cost 61900 61900
income 15800 54400
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