Decision to Discontinue a Product On the basis of the following data, the general manager of Hawkeye Shoes Inc. decided to discontinue Childrens Shoes because it reduced operating income by $30,000.

a. Prepare a differential analysis to determine the flaw in the general managers decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.

Hawkeye Shoes Inc. Product-Line Income Statement For the Year Ended November 30, 20 Y8 Feedback V Check My Work For continue and discontinue alternatives subtract the costs from the revenue. Separate variable from fixed costs. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. b. What is the flaw in the decision to discontinue Children's Shoes, if it is assumed fixed costs would not be materially affected by the discontinuance? The general manager is not focusing on the differential revenues and costs