Differential Analysis for a Discontinued Product

Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Fixed costs are 16% of the cost of goods sold and 39% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Aiternative 1 ) or discontinued (Alternative 2). If an amount is zero, enter " 0 ". If required, use a minus sign to indicate a loss. b. Should the Mufflers line be retained