Question
Dish N Dat Company Product-Line Income Statement For the Month Ended March 31, 2016 1 Bowls Plates Cups 2 Sales $70,800.00 $106,170.00 $31,420.00 3 Cost
Dish N Dat Company Product-Line Income Statement For the Month Ended March 31, 2016 1 Bowls Plates Cups 2 Sales $70,800.00 $106,170.00 $31,420.00 3 Cost of goods sold 32,650.00 42,340.00 16,780.00 4 Gross profit $38,150.00 $63,830.00 $14,640.00 5 Selling and administrative expenses 27,790.00 42,350.00 16,560.00 6 Income from operations $10,360.00 $21,480.00 $(1,920.00) Fixed costs are 10% of the cost of goods sold and 50% of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. Required: A. Prepare a differential analysis dated March 31, 2016, to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required. B. Should the Cups line be retained? Explain.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started