Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) For the Month Ended May 31 Continue Discontinue Cups Cups (Alternative 1) (Alternative 2) Revenues $ 33,500 $ Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Income (loss) Differential Effect on Income (Alternative 2) $ (33,500) The Cups line should be since income would by if the cups is discontinued. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) For the Month Ended May 31 Continue Discontinue Cups Cups (Alternative 1) (Alternative 2) Revenues $ 33,500 $ Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Income (loss) Differential Effect on Income (Alternative 2) $ (33,500) The Cups line should be since income would by if the cups is discontinued