Differential Analysis for a Discontinued Product The condensed product-line income statement for Porcelain Tableware Company for the month of May is as follows: Porcelain Tableware Company Product-Line Income Statement For the Month Ended May 31 Bowls Plates Cups Sales $65,800 $88,700 $26,800 Cost of goods sold 25,700 33,700 14,900 Gross profit $40,100 $55,000 $11,900 Selling and administrative expenses 29,300 35,300 16,100 Income from operations $10,800 $19,700 $(4,200) Fixed costs are 15% of the cost of goods sold and 39% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated May 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) For the Month Ended May 31 Revenues Costs: Variable cost of goods sold Differential Effect Continue Cups (Alternative 1) Discontinue Cups (Alternative 2) on Income (Alternative 2) Variable selling and admin, expenses Foxed costs Income (Loss) b. Should the Cups line be retained? Explain. As indicated by the differential analysis in part (a), the income will by $ if the Cups line is discontinued.