Question: Product B has revenue of 39 500 variable cost of
Product B has revenue of $ 39,500, variable cost of goods sold of $ 25,500, variable selling expenses of $ 16,500, and fixed costs of $ 15,000, creating a loss from operations of $ 17,500. Prepare a differential analysis as of May 9, 2014, to determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.
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