Chapter 25 eBook Print Item Differential Analysis for a Discontinued Product The condensed product-line income statement for Northern Lights Company for the month of August is as follows: Northern Lights Company Product-Line Income Statement For the Month Ended August 31 \begin{tabular}{lccc} \hline & Hats & Gloves & Socks \\ \hline Sales & $65,500 & $88,700 & $26,400 \\ Cost of goods sold & (27,300) & (33,700) & (15,400) \\ \cline { 2 - 4 } Gross profit & $38,200 & $55,000 & $11,000 \\ Selling and administrative expenses & (28,900) & (35,900) & (15,900) \\ \cline { 2 - 4 } Operating income (loss) & $9,300 & $19,100 & $(4,900) \\ \cline { 2 - 4 } \end{tabular} Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Socks August 31 Line Item Description Continue Discontinue Differential Socks Socks Effects Revenues (Alternative 1) (Alternative 2) (Alternative 2) Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) $ $ Feedback TCheck My Work from alternative 2 . Check My Work Previous Next Assignment Score: 83.13% All work saved. Email Instructor Save and Exit Submit Assignment for Grading