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 Light Roast Medium Dark Roast Roast Sales $651,000 $888,000 $272,000 Cost of goods sold (255,000) (324,000) (140,000) Gross profit $396,000 $564,000 $132,000 Selling and administrative expenses (301,000) (341,000) (145,000) < Operating income (loss) $95,000 $223,000 $(13,000) Fixed cests are 42% of the cost of goods sold and 16% of the selling and administrative expenses. Suffolk China Ware assumes that fixed costs would not be significantly affected if the Dark Roast line were discontinued. a. Prepare a differential analysis report for all three products. SUFFOLK CHINA WARE COMPANY Product-Line Income Statement. Differential Analysis Report Differential revenue from monthly sales: Revenue from sales Light Roast Medium Roast Dark Roast 651,000 REX,000 272,000