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Differer:'a| AralySis for a Discontinued Product The condensed product-line income statement for Dish N Dat Company for the month of March is as follows: Dish
Differer:'a| AralySis for a Discontinued Product The condensed product-line income statement for Dish N\" Dat Company for the month of March is as follows: Dish N' Dat Company Product-Line Income Statement For the Month Ended March 31 Bowls Plates Cups Sales $65,700 $89,700 $27,000 Cost of goods sold 25,700 32,800 14,100 Gross profit $40,000 $56,900 $12,900 Selling and administrative expenses 29,400 34,300 16,100 Income from operations $10,600 $22,600 $(3,200) ) Fixed costs are 16% of the cost of goods sold and 36% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. 3. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups (Alternative 1) Discontinue Cups (Alternative 2) Differential Effect on Income (Alternative 2) Revenues 95" I $i I $l i Costs: Variable cost of goods sold i Variable selling and admin. expenses i Fixed costs i Income (Loss) 3"
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