Discontinue a Segment Product Omega has revenue of $194,200, variable cost of goods sold of $114,300,...
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Discontinue a Segment Product Omega has revenue of $194,200, variable cost of goods sold of $114,300, variable selling expenses of $32,200, and fixed costs of $58,500, creating an operating loss of $(10,800). a. Prepare a differential analysis as of January 15 to determine if Product Omega should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Product Omega Line Item Description January 15 Continue Discontinue Product Omega Product Omega Differential Effects (Alternative 1) (Alternative 2) (Alternative 2). Revenues 194,200 $ Costs: Variable cost of goods sold 114,300 V Variable selling and admin. expenses 32,200 58,500 Fixed costs Profit (loss) Discontinue a Segment Product Omega has revenue of $194,200, variable cost of goods sold of $114,300, variable selling expenses of $32,200, and fixed costs of $58,500, creating an operating loss of $(10,800). a. Prepare a differential analysis as of January 15 to determine if Product Omega should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Product Omega Line Item Description January 15 Continue Discontinue Product Omega Product Omega Differential Effects (Alternative 1) (Alternative 2) (Alternative 2). Revenues 194,200 $ Costs: Variable cost of goods sold 114,300 V Variable selling and admin. expenses 32,200 58,500 Fixed costs Profit (loss)
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