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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 Product-Line

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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 Product-Line Income Statement Dark Light Roast Medium Roast Roast Sales $658,000 $897,000 $260,000 Cost of goods sold (254,000) $404,000 (331,000) $566,000 Gross profit (156,000) $104,000 (150,000) Selling and administrative expenses (292,000) (342,000) Operating income (los) $112,000 $224,000 $(46,000) Fixed costs are 39% 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 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 Light Medium Roast Roast Differential revenue from monthly sales: Revenue from sales Differential cost of monthly sales: Dark Roast Total differential costs Monthly differential income from sales

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