Lamothe Kitchen and Bath makes products for the home, which it sells through major retailers and remodeling (do-it-yourself, or DIY) outlets. One product that has had varying success is a ceiling fan for the kitchen. The fan comes in three sizes (36-Inch, 44-Inch, and 54-Inch), which are designed for various kitchen sizes and cooling requirements. The chief financial officer (CFO) at Lamothe has been looking at the segmented income statement for the fan and is concerned about the results for the 36-inch model. 44 Inch $ 597,500 296,680 236,464 54 Inch $ 375,300 174,500 Revenues Variable costs Fixed costs allocated to products 36 Inch $ 393,100 242,600 158,230 Operating profit (loss) 5 (7,730) $ 64,356 $ 50,994 149,806 If the 36-Inch model is 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 25 percent Required: a. Prepare a differential cost schedule to support your recommendation. b. Should Lamothe Kitchen and Bath should drop the 36-Inch model product line? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a differential cost schedule to support your recommendation. (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 Status Quo Alternative: Drop 36-inch Fan Difference Required: a. Prepare a differential cost schedule to support your recommendation. b. Should Lamothe Kitchen and Bath should drop the 36-Inch model product line? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a differential cost schedule to support your recommendation. (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 Status Quo Alternative: Drop Difference 36-Inch Fan Required: a. Prepare a differential cost schedule to support your recommendation. b. Should Lamothe Kitchen and Bath should drop the 36-Inch model product line? Complete this question by entering your answers in the tabs below. Required A Required B Should Lamothe Kitchen and Bath should drop the 36-Inch model product line? Should Lamothe Kitchen and Bath should drop the 36-Inch model product line?