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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
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 $642,000 $893,000 $271,000 Cost of goods sold (261,000) (320,000) (144,000) Gross profit $381,000. $573,000 $127,000 Selling and administrative expenses (290,000) (352,000) (154,000) Operating income (loss) 1 $91,000 $221,000 $(27,000) Foxed costs are 43% of the cost of goods sold and 14% 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
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