Differential Analysis for a Discontinued Product The condensed product line income statement for Rhinebeck Company for the month of October is as follows: Rhineherk Company Product t.ine Incomes Statement For the Month Ended October 31 Fixed costs are 12% of the cost of goods sold and 37% of the selling and administrative expenses. Rhinebeck Company assumes th. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alt: loss