Differential Analysis Report for a Discontinued Product The condensed product-line income statement for Suffolk China Ware Company is as follows: SUFFOLK CHINA WARE COMPANY Product-Line Income Statement Bowls Plates Cups Sales $646,000 $888,000 $ 272,000 Cost of goods sold (264,000) (336,000) (153,000) Gross profit $382,000 $552,000 $119,000 Selling and administrative expenses (292,000) (339,000) (145,000) $(26,000) Operating income (loss) $90,000 $213,000 Fixed costs are 41% of the cost of goods sold and 12% of the selling and administrative expenses. Suffolk China Ware assumes that fixed costs would not be significantly affected if the Cups line were discontinued. a. Prepare a differential analysis report for all three products. SUFFOLK CHINA WARE COMPANY Product Income Differential Analysis Report Bowls Differential revenue from monthly sales: Revenue from sales Differential costs of monthly sales: : Variable cost of goods sold s Plates Cups s Variable selling and administrative expenses s s $ Monthly differential income from sales S s $ Feedback