For the past year, WoolCorp has experimented with its third product, extra-thick rug yarn. The company wishes to consider whether to continue or discontinue manufacturing and selling this product. You decide to prepare a differential analysis of the income related to all three products. To begin your analysis, you review the following condensed income statement. Then scroll down to complete the differential analysis. WoolCorp Condensed Income Statement For the Year Ended December 31, 2048 Raw Wool Wool Yarn Rug Yarn $200,000 $155,000 $197,000 Total Company Sales $552,000 Costs of goods sold: Variable costs $(48,000) (32,000) $(80,000) $(103,750) (69,190) Fixed costs $(18,600) (12,400) $(31,000) $124,000 $(37,150) (24,790) $(61,940) $135,060 Total cost of goods sold $(172,940) Gross profit $120,000 $379,060 Operating expenses: Variable expenses $(5,000) $(7,750) $(53,090) $(65,840) Fixed expenses (89,000) (77,000) (106,200) (272,200) Total operating expenses $(94,000) $(84,750) $(159,290) $(338,040) Operating income (loss) $26,000 $39,250 $(24,230) $41,020 Complete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of products. If required, use a minus sign to indicate a loss. Differential Analysis Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 2048 Continue Rug Yarn (Alternative 1) Discontinue Rug Yarn (Alternative 2) Differential Effects (Alternative 2) Revenues $ 197,000 $ -197,000 Costs: Variable 55,750 o 90,280 Fixed -130,980 -130,980 Profit (loss) $_-24,260 $ -130,980 x $ -106,720 x