Differential Analyais for a Discontinced Product The condensed product-line income statement for Northern Lghts Company for the monen of August is as folloma: Northern Lights Company Product-Line Incerve Statement Fixed costs are 17 Th of the cost of poods sold and 35% of the seling and adminiatratwe expenses Northein Lightr Company amsumei that faed ceiti wuidi nie be materially affected if the sociss ine were doscontioued "o* if required, use a minus sign to indicate a losi. Differential Analysis Continue (A)t. 1) or Discontinue (A)t, 2) 50cks August 31 Fixed costs are 17% of the cost of goods sold and 35% of the selling and administrative expenses. Northern Lights Company assumes that fixed costs would materially affected if the Socks line were discontinued. a. Prepare a differential analysis dated August 31 to determine if Socks should be continued (Alternative 1) or discontinued (Alternative 2 ). if an amount is 2 "0". If required, use a minus sign to indicate a loss. b. Should the Socks line be retained? Decision to Discontinue a Product Dn the basis of the following data, the general manager of Hawkeye Shoes-inc. decided to discontinue Chidren's Shoes because it feduced optrotng income by s3o, ood a. Prepore a differtential analykit to Getermine the faw in the general manager's decision. If an amount is zero, erteer "0". If recuired, use a minus sign to indicate a loss. Differential Analysis If the chidrents Shoes are discontinued, the compserts loss voudd