Mastery Problem: Differential Analysis and Product Pricing WoolCorp WoolCarp buys sheep's wool from farmers. The company began operations in January of this year, and is making decisions on product offerings, pricing, and vendors. The company is also examining its method of assigning overhead to products. You've just been hired as a production manager at WoolCorp. Currently WoolCorp makes three products: (1) raw, clean wool to be used as stuffing or insulation; (2) wool yam for use in the textile industry, and (3) extra-thick yarn for use in rugs Upper management would like your recommendations regarding a production decision regarding their current and proposed product lines. Continue/Discontinue For the past year, WoolCorp has experimented with its third product, extra-thick ng yarn. The company wishes to consider whether to continue or discontinue manufacturing and selling this product. You decide to prepare a differential analysis of the income related to all three products. To begin your analysis, you review the following condensed income statement. Then scroll down to complete the differential analysis WoolCorp Condensed Income Statement For the Year Ended December 31, 201 Sales Raw Wool $210,000 Wool Yarn $155,000 Rug Yarn Total Company $177,000 $542,000 Costs of goods sold Variable costs $48,000) $18,600) $37,170) (103,770) Fixed costs (32,000) (12,400) (24,780) (69,180) total cost of goods w 0000) $31,000) 5(61.950) $172,950) Gress prof $130,000 $124,000 $115,050 $369,050 Operating expenses $5,000 7,750) food expenses (9,000) (77,000) 3,110) (106,200) 65,060) (272,200) Total sperating expenses 94,000) 450) SC159.310) 40334.065