Question: Product S has revenue of 149 000 variable cost of
Product S has revenue of $ 149,000, variable cost of goods sold of $ 88,500, variable selling expenses of $ 24,500, and fixed costs of $ 40,000, creating a loss from operations of $ 4,000. Prepare a differential analysis as of September 12, 2014, to determine if Product S should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.
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