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EX 9.4 Differential analysis for a discontinued product 08. 1 Alternative 1 The condensed product-line income statement for Dish N ' Dat Company for the month $2,200 of March is as follows: Fixed costs are 15% 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 if the Cups line were discontinued. a. Prepare a differential analysis dated March 31,2016, to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). b. Should the Cups line be retained? Explain