eBook Differential Analysis for a Discontinued Product The condensed product-tine Income statement for Dish N'Dot 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 $65,400 $89,000 $26,600 Cost of goods sold 26,900 32,200 15,500 Gross pront $38,500 $56,800 $11,100 Selling and administrative expenses 29,300 34,400 16,000 Income from operations 39,200 $22,100 $(4,900) Fixed costs are 17% of the cost of goods sold and 42% of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materially affected if the Cupstine were discontinued a. Prepare a differential analysis dated March 31 to determine ir Cups should be continued (Alternative 1) or discontinued (Alternative 2)it an amount is zero, enter "o". 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 Costs Check My Work Previous Next > eBook COS $8.50 36,800 Selling and administrative expenses 29,300 34,400 16,000 Income from operations $9,200 $22,400 $(4,900) Fixed costs are 17% of the cost of goods sold and 41% of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materially affected in the Cups line were discontinued. a. Prepare a differential analysis dated March 31 to determine ir Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount in zero, enter *O". 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 Revenues Costs: Variable cost of goods sold Variable selling and admin expenses Fixed costs Income (Loss) D. Should the Cupstine be retained?