Answer:
It will be a financial disadvantage of 52,800
Explanation:
Continued Discontinued Differential
Sales 276000 - -276,000
Variable -193,200 - 193,200
Fixed -30,000 - 30,000
Allocate cost -73000 -73000 -
Result - 20,200 -73,000 -52,800
We compare each alternative:
if discontinued only the allocate cost will remain.
but we also loss the contribution of the product sales.
Sales 13,800 x 20
Variable 13,800 x 14
Tracable Fixed total fixed cost - unavoidable fixed cost
103,000 - 73,000 = 30,000
Allocate 73,000
Once we got the number we plug into the table and calcualte the differential income.
