Question: please fill in the incorrect sections Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October

Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $64,400 $88,500 $27,000 Cost of goods sold (27,300) (32,900) (15,400) Gross profit $37.100 $55,600 $11,600 Selling and administrative expenses (29,900) (35,700) (15,300) Operating income (loss) $7,200 $19,900 $(3,700) Fixed costs are 17% of the cost of goods sold and 36% of the selling and administrative expenses. Rhinebeck Company assumes that foved costs would not bw materially affected if the Gloves line were discontinued 2. Prepare a differential analysis dated October 31 to determine if Muffers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is tero, enter "O". If required, use a minus sign to indicate a loss Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Continue Discontinue Differential Mufflers Mufflers Effects (Alternative 1) (Alternative 2) (Alternative 2) 2000 Revenues 27,000 Costs: 12.10 12.07 Variable cost of goods sold ol 3,792 variable selling and admin. expenses 3,99 Next eBook Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $64,400 $88,500 $27,000 Cost of goods sold (27,300) (32,900) (15,400) Gross profit $37,100 $55,600 $11,600 Selling and administrative expenses (29,900) (35,700) (15,300) Operating income (loss) $7,200 $19,900 $(3,700) Fixed costs are 17% of the cost of goods sold and 36% of the selling and administrative expenses, Rhinebeck Company assumes that foxed costs would not be materially affected in the Gloves line were discontinued a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter *0. 1f required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Continue Discontinue Differential Mufflers Mufflers Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues 27,000 27,000 Costs: Variable cost of goods sold 12,782 0 12,782 Variable selling and admin, expenses 9,792 0 9,792 Fixed costs 8.126 Profit (Loss) 8.126 . Foodback
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
