1)

b Sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Dish N' Dat Company Product-Line Income Statement For the Month Ended March 31 Bowls $71,000.00 32,600.00 $38,400.00 17,400.00 $11,000.00 Plates $105,700.00 42,300.00 $63,400.00 42,800.00 $20,600.00 Cups $31.300.00 16,800.00 $14,500.00 16,700.00 $(2,200.00) Differential Analysis March 31 Differential Effect Continue Cups Discontinue Cups on Income 2 (Alternative 1) (Alternative 2) (Alternative 2) 3 Revenues $31,300.00 $(31,300.00) 4 Costs: in Variable cost of goods sold 0.00 6 Variable selling and administrative expenses 0.00 Fixed costs Income (Loss)Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 25% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $16 Direct labor 20 Factory overhead (25% of direct labor) 5 Total cost per unit $41Differential Analysis Differential Analysis Score: 80/125 Make (Alternative 1) or Buy (Alternative 2) Carrying Case September 30 Make Carrying Differential Effect Buy Carrying Case Case on Income 2 (Alternative 1) (Alternative 2) (Alternative 2) Sales price $0.00 $0.00 $0.00 4 Unit costs: Purchase price 0.00 Direct materials 0.00 7 Direct labor 0.00\fDifferential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) September 13 Continue with Old Machine Replace Old Machine Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Proceeds from sale of old 0 231,000 231,000 machine Costs: Purchase price 545,000 545,000 Variable production costs (8 -488,000 152,000 336,000 years) Income (Loss) -488,000 466,000 22,000