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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 Dish
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 Sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Fixed costs are 15% of the cost of goods sold and 40% 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 "O". Use a minus sign to indicate a loss Cups $31,300 16,800 $14,500 16,700 $(2,200) $71,000 $105,700 32,600 $38,400 27,400 $11,000 42,300 $63,400 42,800 $20,600 Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups (Alternative 1) Discontinue Cups (Alternative 2) Differential Effect on Income (Alternative 2) Revenues ed costs are 15% of the cost of goods sold and 40% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would r terially affected if the Cups line were discontinued. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an nount is zero, enter "o". Use a minus sign to indicate a loss. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups (Alternative 1) Discontinue Cups (Alternative 2) Differential Efect on Income (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Income (Loss)
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