Differential Analysis for a Discontinued Product The condensed product-line income statement for Suffolk China Ware Company for the month of May is as follows: Suffolk China Ware Company Product-Line Income Statement For the Month Ended May 31 Bowls Plates Cups Sales $64,100 $89,700 $26,800 Cost of goods sold 27,000 31,900 14,700 Gross profit $37,100 $57,800 $ 12,100 Selling and administrative expenses 28,600 35,400 16,200 Income from operations $8,500 $ 22,400 $(4,100) Fixed costs are 13% of the cost of goods sold and 39% of the selling and administrative expenses. Suffolk China Ware assumes that fixed costs would not be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated May 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "O". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) For the Month Ended May 31 Differential Effect Continue Cups Discontinue Cups on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Income (Loss) $ $ b. Should the Cups line be retained? Explain. As indicated by the differential analysis in part (a), the income will by $ if the Cups line is discontinued