EX 25-4 Differential analysis for a discontinued product OBJ. 1 The condensed product-line income statement for Dish N' Dat Company for the month of May is as follows: Dish N Dat Company Product-Line Income Statement For the Month Ended May 31 Bowls Plates Cups Sales $71.000 $105,700 $33.500 Cost of goods sold 32,600 42 300 20.600 Gross profit $38.400 $ 63,400 $12.900 Selling and administrative expenses 27.400 42.800 17200 Income from operations $11,000 $ 20,600 514300 Fixed costs are 15% of the cost of goods sold and 30% of the selling and administra- tive expenses. Dish N' Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued a. Prepare a differential analysis dated May 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). b. Should the Cups line be retained? Explain OBJ. 1