Differential Analysis for a Discontinued Product

The condensed product$-$line income statement for Dish N$\text{'}$ Dat Company for the month of March is as follows:

Dish N$\text{'}$ Dat Company

Product$-$Line Income Statement

For the Month Ended March $31$

Fixed costs are $15\%$ of the cost of goods sold and $40\%$ of the selling and administrative expenses. Dish N$\text{'}$ 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 $2).$ If an amount is zero, enter $"0".$ Use a minus sign to indicate a loss.

Differential Analysis

Continue Cups $($Alt$.1)$ or Discontinue Cups $($Alt$.2)$

March $31$