Active Euthanasia Comm ,* Chapter 24 Homework X,.. CengageNOWV2IOnlinex Chegg St
ID: 2532106 • Letter: A
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Active Euthanasia Comm ,* Chapter 24 Homework X,.. CengageNOWV2IOnlinex Chegg Study I Guided Sc × × ? ? ?v2.cengagenow.com/ilm/takeAssignment takeAssignmentManao?invoker-&takeAssignmentSessionLocator-assignment; take&inprogress-false; Chapter 24 Homework eBook Calculator Print llen 1. BE.24-02 ALGO Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Children's Shoes 2. BE.24-05.ALGO Continue Children's Shoes Altemative 1) Discontinue Children's Shoes (Alnernative 2) Differential Effect on Income Alternatve 2) 3. BE.24-06.ALGO Costs: 4. EX.24-01.ALGO 5. EX.24-03.ALGO 6. EX.24-06 7. EX.24 07.ALGO Variable cost of goods scld Variable selling and admin. expenses Fixed costs Income (Loss) 8. EX.24-09.ALGO b. What is the flaw in the decision to discontinue Children's Shoes, if it is assumed fixed costs would not be materially affected by the discontinuance? The general manager is not focusing on the differential revenues and costs. If the children's Shoes are discontinued, the company's income would decrseby 9. EX.24-11.ALGO 10. EX.24-15 ALGO Feedback Check My Work Previous Next Progress: 6/10 items 4:04 PM / g) do 4/26/2018Explanation / Answer
Answer:
1
Diffrantial analysis
Alternative
1
2
Continue Children’s Shoes
Dis -Continue Children’s Shoes
Differential Effect on Income
Sales
235000
0
(2,35,000)
Less:Variable costs
0
Costs of goods sold:
(130,000)
0
130,000
Variable selling and admin. Expenses
(46000)
0
46,000
Less: Fixed Cost
(76000)
(76000)
0
Income (loss)
(17,000)
(76,000)
(59,000)
2
If Chidren shoes are discontinued ,then net income would decrease by $59000
Diffrantial analysis
Alternative
1
2
Continue Children’s Shoes
Dis -Continue Children’s Shoes
Differential Effect on Income
Sales
235000
0
(2,35,000)
Less:Variable costs
0
Costs of goods sold:
(130,000)
0
130,000
Variable selling and admin. Expenses
(46000)
0
46,000
Less: Fixed Cost
(76000)
(76000)
0
Income (loss)
(17,000)
(76,000)
(59,000)
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