Differential analysis for a discontinued product

EX 24-4 Differential analysis for a discontinued product obj. 1 native 1 The condensed product-line income statement for Dish N Dat Company for the month of , $2,200 March is as follows: Dish N' Dat Company Product-Line Income Statement TEMPLATE Sales Cost of goods sold Gross proft $71,000 $105,700 $31,300 32,600 $38,400 63,400 $14,500 27,400 $11,000 20,600 $(2,200) 42300 16,800 42.800 16,700 seling and adininistrative expenses Income from operations Fixed costs are 15% of the cost of goods sold and 40% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued A. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). B.- Should the Cups line be retained? Explain