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. Sales Costs of goods sold: Variable costs 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 $1,035,000 Total Fixed costs Total cost of goods sold Gross profit $130,000 41,000 $150,000 60,000 $171,000 $210,000 $220,000 $500,000 120,000 221,000 $340,000 $721,000 $64,000 $90,000 $160,000 $314,000 Selling and administrative expenses: Variable selling and admin. expenses $46,000 $45,000 $95,000 $186,000 Fixed selling and admin. expenses 35,000 20,000 25,000 80,000 Total selling and admin, expenses $81,000 $65,000 $120,000 $266,000 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 "0". Use a minus sign to indicate a loss. Revenues Costs: Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Children's Shoes Continue Children's Shoes Discontinue Children's Shoes (Alternative 1) 1,035,000 X (Alternative 2) 800,000 X Differential Effect on Income (Alternative 2) 235,000 Variable cost of goods sold 500,000 X 370,000 X 130,000 Variable selling and admin. expenses 186,000 X 140,000 X 46,000 Fixed costs 301,000 X 301,000 X Income (Loss) 48,000 X 11,000 X -59,000 Feedback