ondensed Income Statement For the Year Ended December 31, 2018 Raw Wool Wool Yarn Rug Yarn Total Company Sales $210,000 $155,000 $187,000 $552,000 Costs of goods sold: Variable costs Fixed costs $(48,000) $(37,160) $(18,600) (12,400) $(103,760) (69,200) (32,000) (24,800) Total cost of goods sold $(80,000) $(31,000) $(61,960) $(172,960) Gross profit $ 130,000 $124,000 $125,040 $379,040 Operating expenses: Variable expenses $(5,000) $(7,750) $(53, 110) $(65,860) Fixed expenses (89,000) (77,500) (106,200) (272,700) Total operating expenses $(94,000) $(85,250) $(159,310) $(338,560) Operating income (loss) $36,000 $38,750 $(34,270) $40,480 Complete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of products. If required, use a minus sign to indicate a loss. Differential Analysis Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 2018 Continue Rug Yarn (Alternative 1) Discontinue Rug Yarn (Alternative 2) Differential Effects (Alternative 2) Revenues $ Costs: Variable Fixed Profit (loss)