Bowls Sales Differential Analysis for a Discontinued Product The condensed product-ine Income statement for Dish N Dat Company for the month of March is as follows: Dish N' Dat Company Product Line Income Statement For the Month Ended March 31 Plates Cups $65,100 $89,000 $26,600 Cost of goods sold 26,900 32,200 15,500 Gross pront $38,500 $56,800 $11,100 Selling and administrative expenses 29,300 34,400 16,000 Income from operations 59,200 $22.400 5(4,900) Faxed costs are 17% of the cost of goods sold and 41% of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materiay affected the Cups line were discontinued a. Prepare a internet analysis dated March 31 to determiner Cups should be continued (Alternative }) or discontinued (Alternative 2). Ir an amount is zero, enter som Ose minus sign to indicate a loss Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups (Alternative 1) Discontinue Cups (Alternative 2). Differential Effection Income (Alternative 2) Revenues 26,600 26,600 Costs Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups (Alternative !) Discontinue Cups (Alternative 2) Differential Effect on Income (Alternative, 2) 26,600 o 26,600 Revenues Costs 12,865 Variable cost of goods sold Variable selling and admin, expenses 0 12,865 94410 9400 Fixed costs 0 Income (Loss) X 4,295 YO MW For continue and discontinue alternatives subtract the costs from the revenue. Use percentages to separate variable from fixed costs. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 2 from alternative 1. Learning Objective 1. b. Should the Cups line be retained? Feed Check My Work