Question

Crane Company Division B recorded sales of $76,000, variable cost of goods sold of $53,600, variable selling expenses of $20,900, and fixed costs of $13,400, creating a loss from operations of $11,900.

Determine the differential income or loss from the sales of Division B. Enter a loss as a negative number.
$__________ (loss or income?)

Should this Division B be discontinued? (If the answer to above part is negative, select "Yes".)

__________ yes or no?

Answer 1

1
Sales	76000
Less:
Variable cost of goods sold	53600
Variable selling expenses	20900
Differential income from the sales of Division B	1500	Income
2
No, Division B should not be discontinued