Decision to Discontinue a Product On the basis the following data, the general manager of Featherweight Shoes Inc. decided to discontinue Children's Shoes because reduced income from operations by $17,000 Featherweight Shoes Inc. Product-Line Income Statement For the Year Ended April 30, 20Y8 Children's Women's Men's Shoes Total Shoes Shoes $300,000 $1,035,000 $235,000 $500,000 Sales Costs of goods sold: Variable costs $130,000 $150,000 $220,000 $500,000 41,000 60,000 120,000 221,000 Fixed costs $210,000 $721,000 $171,000 $340,000 Total cost of qoods sold $90,000 $160,000 $314,000 Gross profit $64,000 Selling and administrative expenses Variable selling and admin. expenses $46,000 $45,000 $95,000 $186,000 80,000 Fixed selling and admin. expenses 35,000 20,000 25,000 $65,000 Total selling and admin. expenses $81,000 $120,000 $266,000 $(17,000) $25,000 $40,000 $48,000 Income (Loss) from operations 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. 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 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? by $ If the children's Shoes are discontinued, the company's would