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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: BRCC
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: BRCC Learn Library Help Dish N Dat Company Product-Line Income Statement For the Month Ended May 31 Bowls Plates Sales Cost of goods sold Gross proft Cups $71000$105,700$33,500 20,600 $12,900 Seling and administrative expenses 27,400 42,80017,200 32,500 42,300 $38,400 $63,400 Income from operations $11,000 $20,600 $(4,300) Fixed costs are 15% of the cost of goods sold and 30% of the seling and administrative expenses. Dish N Dat assumes that fixed costs would not be materialy affected if the Cups line were discontinued. . Prepare a ifferential analysis dated May 31 to determine if Cups should be continued (Alternative !) or discontinued CAlterrative 2), If an amount is zero, enter "0". For those baxes in which you must enter subtracted or negative rumbers use a minus sign Differential Analysis Continue Cups (Alt. 1) or Discontinse Cups (Alt. 2) For the Month Ended Hay 31 Continue Oups DiscontinueCups Differential Effect (Alternative 1) (Altenative 2) (Altemative 2) 2)on Income Reverues Cots: varable cost of gbots sold Varable selling and admin. epenses Foed costs scome (Loss) b. Shodd the Cupa line be retained? Explan. As indicated by the fferectial analysis in part (a), the Income all v bys the Cups ine is discentinued
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