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 Sales Cost of goods sold Gross profit Selling and administrative expenses Operating income (loss) Bowls $649,000 (256,000) $393,000 (296,000) $97,000 Plates $895,000 (324,000) $571,000 (359,000) $212,000 Cups $262,000 (145,000) $117,000 (152,000) $(35,000) Fixed costs are 41% of the cost of goods sold and 14% 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 Cups Differential revenue from monthly sales: Revenue from sales Differential costs of monthly sales Variable cost of goods sold Fixed selling and administrative expenses x Monthly differential income from sales