< Differential Analysis for a Discontinued Product 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 Sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Bowls Plates Cups $65,100 $89,400 $27,500 26,400 31,900 14,700 $38,700 $57,500 $12,800 30,200 35,300 15,900 $8,500 $22,200 $(3,100) Fixed costs are 15% of the cost of goods sold and 42% 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 (Alte minus sign to indicate a loss, ount is zero, enter "0". Use a Revenues Costs: Variable cost of goods sold - Check My Work Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups (Alternative 1) Discontinue Cups (Alternative 2) Differential Effect on Income (Alternative 2) Previous Next