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Bowls Plates Cups Sales $92,300 $137,400 $43,500 Cost of goods sold 42,300 55,000 26,700 Gross profit $50,000 $82,400 $16,800 Selling and administrative expenses 35,600 Income
Bowls Plates Cups Sales $92,300 $137,400 $43,500 Cost of goods sold 42,300 55,000 26,700 Gross profit $50,000 $82,400 $16,800 Selling and administrative expenses 35,600 Income from operations $14,400 55,600 $26,800 22,400 $(5,600) Fixed costs are 15% of the cost of goods sold and 25% of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated May 31 to determine whether to Continue Cups (Alternative 1) or Discontinue Cups (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis) Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) For the Month Ended May 31 Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (loss) Continue Cups Discontinue Cups (Alternative 1) (Alternative 2) Differential Effects (Alternative 2) 0000 0000 0000
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