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:

	Bowls	Plates	Cups
Sales	$71,000	$105,700	$31,300
Cost of Goods sold	32,600	42,300	16,800
Gross Profit	$38,400	$63,400	$14,500
Selling and Administrative Expenses	27,400	42,800	16,700
Income from Operations	$11,000	$20,600	$(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 be materially affected if the Cups line were discontinued.

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: 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 be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated March 31, 2014, to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero ''0