Product Tango has a total revenue of $193,000, variable costs of $148,300, and fixed costs of $61,900. This creates a loss of $17,200 Primary Co. is trying to decide whether it should keep or discontinue Product Tango.   Prepare a differential analysis to support your decision. Assume fixed costs are unaffected by the decision. (Fill out the chart, and answer question on bottom)     Keep Discontinue Revenue                                       1 of 7                                                    2 of 7 VC -                                    3 of 7 -                                         Question Blank 4 of 7 CM =                                    Question Blank 5 of 7 =                                        Question Blank 6 of 7 (Keep is the m

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...
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Product Tango has a total revenue of $193,000, variable costs of $148,300, and fixed costs of $61,900. This creates a loss of $17,200 Primary Co. is trying to decide whether it should keep or discontinue Product Tango.

 

Prepare a differential analysis to support your decision. Assume fixed costs are unaffected by the decision. (Fill out the chart, and answer question on bottom)

 

  Keep Discontinue
Revenue                                       1 of 7                                                    2 of 7
VC -                                    3 of 7 -                                         Question Blank 4 of 7
CM =                                    Question Blank 5 of 7 =                                        Question Blank 6 of 7

(Keep is the more profitable decision, Both are equally profitable, or Discontinuation is the more profitable situation)

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