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Decision to Discontinue a Product:On the basis of the following data, the general manager of Featherweight Shoes Inc. Decided to discontinue Children's Shoes because it reduced income from operations by $17,000. Featherweight Shoes Inc. Product-Line Income StatementFor the Year Ended April 30, 20Y8Children's Shoes Men's Shoes Women's Shoes TotalSales $235,000 $300,000 $500,000 $1,035,000---------------------- ----------------- -------------------- ---------------Cost of Goods Sold: Variable Costs $130,000 $150,000 $220,000 $500,000Fixed Costs $41,000 $60,000 $120,000 $221,000---------------------- ----------------- -------------------- ---------------Total Cost of Goods Sold $171,000 $210,000 $340,000 $721,000---------------------- ----------------- -------------------- ---------------Gross Profit $64,000 $90,000 $160,000 $314,000---------------------- ----------------- -------------------- ---------------Selling and Administrative Expenses: Variable Selling and Admin. Expenses $46,000 $45,000 $95,000 $186,000Fixed Selling and Admin, Expenses $35,000 $20,000 $25,000 $80,000---------------------- ----------------- -------------------- ---------------Total Selling and Admin. Expenses $81,000 $65,000 $120,000 $266,000---------------------- ----------------- -------------------- ---------------Income (Loss) from Operations $(17,000) $25,000 $40,000 $48,000============= ========== ============ =========Required:1. Prepare a differential analysis to determine the flaw in the general manager's decision. If an amount is zero, enter "0". Use minus sign to indicate a loss. Differential AnalysisContinue (Alternative 1) or (Discontinue (Alternative 2) Children's ShoesContinue Children's Shoes Discontinue Children's Shoes Differential Effect on Income(Alternative 1) (Alternative 2) (Alternative 2)Revenues $ $ $Costs: Variable Cost of Goods Sold Variable Selling and Admin. Expenses Fixed Costs --------------------------------- ------------------------------------ ----------------------------------Income (Loss) $ $ $==================== ====================== =====================2. What is the flaw in the decision to discontinue Children's Shoes, if it is assumed fixed costs would not be materially affected by the discontinuance?