ASA Tours operates a network of offices around the globe specializing in local tours given by local residents and academics. Depending on the year, it operates at between 60 and 70 percent of capacity, which consists of locals who meet the criteria required by ASA ASA operates three types of tours. Web-based tours consist of live-stream broadcasts with a limit of 15 participants. Group tours consist of small groups of no more than eight people. Finally, there are individual tours, which are personalized tours for no more than six people. Segmented income statements for a typical month appear as follows: Routes Sales Group $274,600 216,300 Web-Based Individual $ 106,800 23,100 34,896 $ 180,600 $ 48,804 88,592 $ (38,292) 101,300 58,512 $ 20,788 Variable costs Fixed costs allocated to tours Operating profit (loss) ASA is considering dropping the group tours. If these tours are dropped, the revenue associated with the tours would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 35 percent. Required: a-1. Prepare a differential cost schedule. a-2. Should ASA Tours drop the group tours? b. Are there other factors you would recommend ASA Tours consider before making the decision? Required a 1 Required a 2 Required b Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. S- there is no effect.) Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profit (loss) Status Quo Alternative: Drop Group Tours + Difference decrease decrease decrease decrease increase Required a 2