Decision to discontinue a product Instructions Labels and Amount Descriptions Differential Analysis Questions Instructions On the basis of the following data, the general manager of Featherweight Shoes Inc. decided to discontinue Children's Shoes because it reduced income from operations by $17,000. 1 2 Sales 3 Costs of goods sold: Featherweight Shoes Inc. Product-Line Income Statement For the Year Ended April 30, 20Y8 Children's Shoes $235,000.00 Men's Shoes Women's Shoes Total $300,000.00 $500,000.00 $1,035,000.00 4 Variable costs $130,000.00 $150,000.00 $220,000.00 $500,000,00 5 Fixed costs 41,000.00 60,000.00 120,000.00 221,000.00 6 Total cost of goods sold $171,000.00 $210.000.00 $340,000.00 $/21,000.00 7 Gross profit $64,000.00 $90,000.00 $160.000.00 $314,000.00 8 Selling and administrative expenses: 9 Variable selling and admin. expenses $46,000.00 $45.000.00 $95,000,00 $186,000:00: 10 Fixed selling and admin. expenses 35,000.00. 20.000.00. 11 Total selling and admin. expenses $81,000.00 $65,000.00 25.000.00 $120,000.00 80,000.00 $266,000,00 12 Income (loss) from operations $(17,000.00) $25,000:00 $40.000,00 $48,000:00 Required: What is the flaw in this decision, if it is assumed fixed costs would not be materially affected by the discontinuance? (Prepare the Differential Analysis before responding to the questions.)