November 30 Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Children's Shoes $35,000 000 0s (o00'STC)s 000's2 (000'08)s (o00'SL) (000'S9)s $(120,000) a. Prepare a differential analysis to determine the fiaw in the general manager's decision, If an amount is zero, enter 0". If required, use a minus sign to indicate a loss. (000'sz) (000'0Et)s (000'0+2)s (000'0z) (000'56)S (o00 0E) (000's+)s Operating income (loss) (o00'001)s 000'0SS Total selling and admin. expenses (000'0EL)S 000'06$ Fixed selling and admin. expenses $160,000 (o00'Szz) (000'0) 000 001$ (000'01z)s Variable selling and admin. expenses (000'0zT) (000'08T)s (000'sos)S Selling and administretive expenses: (000'09) (000'0z)s (000'S) (o00'oST)S Gross profit (000'SET)S Total cost of goods sold $1,080,000 $500,000 000 00 Sales Children's Shoes Men's Shoes Women's Shoes Total 000 082 Variable costs Costs of goods sold: For the Year Ended November 30, 20Y8 Product-Line Income Statement Hawkeye Shoes Inc. On the basis of the following data, the general manager of Hawkeye Shoes Inc. decided to discontinue Children's Shoes because it reduced operating income by $30,000. (o00's6)s (o00'0vz)s Foxed selling and admin. expenses (o00'os) (000'oz) (o00' (o00'S2) Total selling and admin. expenses (000'0Et) (o00's9)s (o00'0z1)$ (o00'SIE)S Operating income (loss) (o00'oc)s 000's 000'ors 000'SES a. Prepare a differential analysis to determine the flaw in the general manager's decision. If an amount is zero, enter 0. If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Children's Shoes November 30 Discontinue Continue Children's Shoes Children's Shoes (Alternative 1) Differential Effects (Alternative 2) (Alternative 2) Revenues Variable cost of goods sold Variable selling and admin. expenses Foced costs (ss01) yo b. What is the flaw in the decision to discontinue Children's Shoes, if it is assumed fixed costs would not be materially affected by the discontinuance? If the children's Shoes are discontinued, the company's loss would by Check My Work