Decision to Discontinue a Product 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 Featherweight Shoes Inc. Product-Line Income Statement For the Year Ended April 30, 20Y8 Children's Shoes Men's Shoes $235,000 $300,000 Women's Shoes $500,000 Total $1,035,000 $130,000 $150,000 41,000 Sales Costs of goods sold: Variable costs Fixed costs Total cost of goods sold Gross profit Selling and administrative expenses Variable selling and admin. expenses Fixed selling and admin. expenses Total selling and admin. expenses Income (Loss) from operations $220,000 120,000 $340,000 60,000 $210,000 $90,000 $500,000 221,000 $721,000 $314,000 $171,000 $64,000 $160,000 $46,000 35,000 $45,000 20,000 365,000 $25,000 $95,000 25,000 $120,000 $40,000 $185,000 80,000 $266,000 $81,000 ${17,000) $48,000 a. Prepare a differential analysis to determine the flaw in the general manager's decision. If an amount is zero, enter "0". Use a minus sign to indicate a los Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Children's Shoes Continue Children's Shoes Discontinue Children's Shoes Differential Effect on Income seny U. > 200,00 Income (Loss) from operations $(17,000) $25,000 $40,000 $48,000 a. Prepare a differential analysis to determine the flaw in the general manager's decision. If an amount is zero, enter "O". Use a minus sign to indicate a loss, Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Children's Shoes Continue Children's Shoes Discontinue Children's Shoes Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin, expenses Fixed costs ID DO Income (Loss) 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? If the children's Shoes are discontinued, the company's would by