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.

$36$ Inch $44$ Inch $54$ Inch

Revenues $ $381,700$ $ $584,900$ $ $362,700$

Variable costs $236,600290,680168,500$

Fixed costs allocated to products $152,230230,464143,806$

Operating profit $($loss$)$ $ $(7,130)$ $ $63,756$ $ $50,394$

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?