Product Tango has revenue of $193,700, variable cost of goods sold of $115,700, variable selling expenses of $33,400, and fixed costs of $60,900, creating an operating loss of $(16,300). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.
b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2).