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Unformatted text preview: A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. a. SUFFOLK CHINA WARE COMPANY Differential Product Analysis Report For the Year Ended December 31, 2010 Bowls Plates Cups Differential revenue from annual sales: Revenues from sales $54,000 $68,500 $24,500 Differential cost of annual sales: Variable cost of goods sold $19,040 $26,945 $10,115 Variable sel ing and administrative expenses 16,980 15,180 12,240 Total Variable Costs $36,020 $42,125 $22,355 Annual differential income from sales $17,980 $26,375 $2,145 b. Should the cups be retained? Yes Explain (select your answer from the drop-down list): The Cups line should be retained because its differential income exceeds its differential costs. Instructions...
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This note was uploaded on 11/04/2011 for the course ACC 121 taught by Professor Thomas during the Winter '08 term at Baker MI.
- Winter '08