Deason to Discontinua Product On the basis of the following data, the general manager of Haskeve Shoes Inc. decided to discontinue Children's Shoes because reduced operating income by $30,000 Total $1,050,000 Hawkeye Shoes Inc Product Line Income Statement For the Year Ended November 30, 20Y Children's Shoes Men's Shoes Women's Shoes $280,000 $300,000 $500,000 Costs of goods sold Vanabilec $135,000) (150,000) (220,000) Freed costs (45,000) (60,000) (120,000) Total cost of goods sold 100,000) 210,000) (140,000) Gross profit $100,000 $90,000 $100,000 Selling and administrative expenses Variable selling and admin, expenses $(100,000) $(45.000) 5(95,000) Fored selling and admin expenses (30,000) (20,000) (25,000) Total selling and ad expenses $130,000) ${65,000) $(120,000) ${30,000) 525.000 Operating income (loss) $40,000 $(505,000) (225,000) SC730,000) $350,000 5(240,000) (75,000) $315.000) $35,000 4. Prepare a differential analysis to determine the flow in the general manager's decision. If an amount is sero, enteroIf recured, use a minus sign to indicate a loss Differential Analysis Total selling and adme expenses Operating income (los) [130,000) 5130,000) 5(65,000) $25,000 $(120,000) $40.000 $(315,000) $35,000 a. Prepare a differential analysis to determine the flow in the general manager's decision. In amount is zero, enter "O". If required, use a minus sign to indicate a loss, Differential Analysis Continue (Alt. 1) or Discontince (Alt. ) Children's shoes November 30 Continue Discontinue Children's Shoes Children's Shoes (Alternative I) (Alternative ?) Differential Effects (Alternative) Costs Variable cost of goods Variable and expenses 3 Profit (Loss) . What is the low in the decision to discontinue Children's Shoes, it wassumed fixed costs would not be matersally affected by the discontinuance? If the children's shoes are discontinued, the company's loss would by