H Instructions Labels and Amount Descriptions Differential Analysis Final Question 0 Instructions The condensed product in income statement for Dish N Dat Company for the month of May is as follows: Plates Dish Net Company Product Line Income Statement For the Month Ended May 31 Bowls $70,860.00 32,760.00 $38,100.00 26,910.00 Sales $105,260.00 Cups $31.320.00 17.130.00 Cost of goods sold 42.570.00 562.590.00 42.460.00 $14.190.00 16800.00 Selling and administrative expenses Income from operation $11,190.00 520,130.00 512610.00) Faxed costs are 20% of the cost of goods sold and 40% of the selling and administrative expenses. Dish N'Dat assumes that fixed costs would not be materially affected at the Cups line were discontinued Fixed costs are 20% of the cost of goods sold and 40% of the seling and administrative expenses. Dish N Dat assumes that fixed costs would not be materially affected it the Cups line were discontinued. Required: A. Prepare a differential analysis cated May 31 to determine i Cups should be continued (Alternative t) or discontinued (Alternative 2). Heter to theists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. I there is no amount or an amount is zero, enter "o". A colon () will automatically appear if required B. Should the Cups Ine be retained? Explain Labels and Amount Descriptions Labels Cash flows from investing activities Costs Amount Descriptions Fixed costs Gain on sale of investments Income (loss) Loss on sale of investments Revenues Total costs Fix Variable cost of goods sold Variable selling and administrative expenses we For the Month Ended May 31 A. Prepare a differential analysis dated May 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign it there is no amount or an amount is zero, enter "o". A colon () will automatically appear if required. Differential Analysis Continue Cups (Alternative 1) or Discontinue Cups (Allemative 2) For the Month Ended May 31 Continue Cups Discontinue Cups Differential Effect on Income (Alternative 1) (Alternative (Alternative 2) we 3 Label 5 1 fferential Analysis Final Question B. Should the Cups line be retained? Explain. No Yes by As indicated by the differential analysis in part (A), the income will if the Cups line is discontinued. 4 (Label)
