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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:
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 $66,000 $88,900 $26,400 27,200 32,700 14,000 $38,800 $56,200 $12,400 28,700 34,200 15,100 $10,100 $22,000 $(2,700) Fixed costs are 15% of the cost of goods sold and 38% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would not be materially affected 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.
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