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 $644,000 $899,000 $266,000 Cost of goods sold (270,000) (324,000) (153,000) Gross profit $374,000 $575,000 $113,000 Selling and administrative expenses (285,000) (348,000) (153,000) Operating income (loss) $89,000 0 $227,000 $2 $(40,000) Fixed costs are 37% of the cost of goods sold and 17% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be significantly affected if the Cups line were discontinued. Fixed costs are 37% of the cost of goods sold and 17% 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