Differential Analysis Report for a Discontinued Product The condensed product-line income statement for Porcelain Tableware Company is as follows: PORCELAIN TABLEWARE COMPANY Product-Line Income Statement Bowls Plates Cups Sales $648,000 $904,000 $269,000 Cost of goods sold (253,000) (336,000) (154,000) Gross profit $395,000 $568,000 $115,000 Selling and administrative expenses (300,000) (356,000) (146,000) Operating income (loss) $95,000 $212,000 $(31,000) Fixed costs are 41% of the cost of goods sold and 16% of the selling and administrative expenses. Porcelain Tableware 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. PORCELAIN TABLEWARE COMPANY Product Income Differential Analysis Report Bowls Plates Differential revenue from monthly sales: Cups Differential costs of monthly sales: Monthly differential income from sales b. Which of the following statements about the Cups line is true