Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce green beans; sweet peas, and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the company's performance, the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent Segmented income statements appear as follows Sales Variable costs Contribution margin Green Beans $ 86,000 59,000 $ 27,000 11,580 Sweet Peas $ 120,500 108,400 $ 12,100 17,340 5 (5,240) Tomatoes $ 140,200 113,300 $ 26,900 24,360 $ 2,540 Fixed costs allocated to each product line Operating profit (loss) $ 15,420 Required: a. Prepare a differential cost schedule. b. Should Gilbert Canned Produce drop the sweet pea product line? Required A Required B Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Revenue Less Variable costs Contribution margin Less Fixed costs Operating profit (loss) Status Quo Alternative: Drop Sweet Peas Difference decrease decrease decrease Required B > decrease decrease 0 0 0 0 0