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 Sales $64,500 $90,300 $26,800 26,000 Cost of goods sold 32,300 15,200 Gross profit $38,500 $58,000 $11,600 Selling and administrative expenses 29,200 33,900 16,000 Income from operations $9,300 $24,100 $(4,400) Fixed costs are 15% of the cost of goods sold and 41% 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 Discontinue Cups Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues $ 29,200 33,900 16,000 Selling and administrative expenses $9,300 $24,100 $(4,400) Income from operations Fixed costs are 15% of the cost of goods sold and 41% 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 Discontinue Cups Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues S S $ Costs: Variable cost of goods sold Variable selling and admin, expenses Fixed costs $ Income (Loss) b. Should the Cups line be retained