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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
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 $66,000 27,200 $38,800 29,300 $9,500 Plates $89,500 32,000 $57,500 34,600 $22,900 Cups $27,100 15,800 $11,300 16,100 $(4,800) Sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Fixed costs are 15% of the cost of goods sold and 36% 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 (Alternative 2). If an 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) Costs: Variable cost of goods sold Variable selling and admin. expenses Fixxed costs Income (Loss) b. Should the Cups line be retained
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