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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

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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 Bowls Plates Cups 71,000 $105,700 $31,300 Sales Cost of goods sold Gross proft Selling and administrative expenses Income from operations 32,600 $38,400 27,400 $11,000 42,300 $63,400 42,800 $20,600 16,800 $14,500 16,700 $(2,200) Fixed costs are 15% of the cost of goods sold and 40% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would not 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 "O". Use a minus sign to indicate a loss 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) Revenues Costs: Variable cost of goods sold $71,000 32,600 $38,400 27,400 $11,000 $31,300 16,800 $63,400 14,500 16,700 20,600 $(2,200) $105,700 les st of goods sold ross profit elling and administrative expenses ncome from operations Fixed costs are 15% of the cost of goods sold and 40% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would r 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 42,300 42,800 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 Continue Cups (Alternative 1) Discontinue Cups (Alternative 2) Differential Effect on Income (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

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