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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 May 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 May is as follows: Dish N' Dat Company Product-Line Income Statement For the Month Ended May 31 Bowls Plates Cups Sales $92,300 $137,400 $43,500 Cost of goods sold 42,300 55,000 26,700 Gross profit $50,000 $82,400 $16,800 Selling and administrative expenses 35,600 55,600 22,400 Income from operations $14,400 $26,800 $(5,600) Fixed costs are 15% of the cost of goods sold and 25% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. Question Content Area a. Prepare a differential analysis dated May 31 to
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