E12-3 The condensed product-line income statement for Dinner Ware Company is as follows Differential analysis report for a discontinued product Dinner Ware Company Product-Line Income Statement Bowls Plates $1,500,000 $2,350,000 $975,000 1,400,000 600,000950,000 195,000 Cups Sales Cost of goods sold Gross profit Selling and administrative expenses Income (loss) from operations 900,000 780,000 270,000 700,000 300,000 S 330,000 250,000 $05,000 Fixed costs are 40% of the cost of goods sold and 18% of the selling and administrative expenses. Dinner Ware 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. b. Should the Cups line be retained? Explain