Depending on the year, it operates at between $60$ and $70$ percent of capacity, which consists of locals who meet the criteria required

by ASA. ASA operates three types of tours. Web$-$based tours consist of live$-$stream broadcasts with a limit of $15$ participants. Group

tours consist of small groups of no more than eight people. Finally. there are individual tours, which are personalized tours for no more

than six people.

Segmented income statements for a typical month appear as follows:

ASA is considering dropping the group tours. If these tours are dropped, the revenue associated with the tours would be lost and the

related variable costs saved. In addition, the company's total fixed costs would be reduced by $35$ percent.

Required:

a$-1.$ Prepare a differential cost schedule.

a$-2.$ Should ASA Tours drop the group tours?

b$.$ Are there other factors you would recommend ASA Tours consider before making the decision?

Prepare a differential cost schedule.

Note: Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.