Explain please.

Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Mufflers Gloves $89,700 $64,100 $26,600 Sales Cost of goods sold (25,900) (31,900) (15,700) Gross profit $38,200 $57,800 $10,900 Selling and administrative expenses (28,400) (16,400) (35,400) $22,400 Operating income (loss) $9,800 $(5,500) Fixed costs are 15% of the cost of goods sold and 35% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Continue Discontinue Differential Mufflers Mufflers Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss)