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Differential analysis for a discontinued product Instructions Labels and Amount Descriptions Differential Analysis Instructions The condensed product-line income statement for Dish N' Dat Company for
Differential analysis for a discontinued product Instructions Labels and Amount Descriptions Differential Analysis Instructions The condensed product-line income statement for Dish N' Dat Company for the month of March is as follows: Dish N' Dat Company Product-Line Income Statement For the Month Ended March 31 1 Bowls Plates 2 Sales Cups $31,080.00 17,150.00 Cost of goods sold Gross profit Selling and administrative expenses Income from operations $71.450.00 32,370.00 $39,080.00 27.590.00 $11.490.00 $105,450.00 42,660.00 $62,790.00 12,730.00 $13,930.00 16,200.00 $(2,270.00) $20,060,00 Food costs are 10% of the cost of goods sold and 30% of the selling and administrative expenses. Dish N Dat assumes that foxed costs would not be materially affected if the Cups line were discontinued Differential Analysis a. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternativo 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "O". A colon () wil automatically appear if required Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Cups March 31 Continue Cups Discontinue Cups Differential Effect on Income (Alternative 2) 2 (Alternative 1) (Alternative 2) 3 * (Label) 5 b. Should the Cups line be retained? Explain. No Yes $ As indicated by the differential analysis in part (a), the income will discontinued if the Cups line is
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