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Please Help!! Thanks! Instructions Labels and Amount Descriptions Differential Analysis Final Question Instructions The condensed product-line income statement for Dish N' Dat Company for the
Please Help!! Thanks!
Instructions Labels and Amount Descriptions Differential Analysis Final Question Instructions The condensed product-line income statement for Dish N' Dat Company for the month of March is as follows: Dish N' Dat Company Product-Line Income Statement For the Month Ended March 31 1 Bowls Plates Cups 2 Sales $70,530.00 $105,840.00 $31,170.00 3 Cost of goods sold 32,650.00 42,010.00 17,180.00 4 Gross profit $37,880.00 $63,830.00 $13,990.00 27,360.00 42,340.00 16,640.00 5 Selling and administrative expenses 6 Income from operations $10,520.00 $21,490.00 $(2,650.00) Fixed costs are 10% of the cost of goods sold and 50% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. Required: a. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "O". A colon () will automatically appear if required b. Should the Cups line be retained? Explain. Labas and Amount Descrptions Labela CashHows from westing activities Coat Amount accions Find Gain on sale of investments IR) Loss on sale of investments RETURN Total costs Variable cost of goods sold Variable selling and administrate expenze Dental Analysis 2. Parca donnansy date Waren u to determine i Cupe should be contact discotec 2. Hetor to the list of Label and Amount Decopate to the coast wording the grour choice tortext entre or more boxes which you must enters trotser negative cumbers use a nuespit here O amount or an amounitiezen, entero. A co w Butoily operiqured Diferential Analys Conduc (Alternate 1 or Discontinue tinc Z1 Cups March 31 Continue Cups Discontinue Cups Differential Effect on Income (Alematve 1) Arte 3 Amative 21 fabell Final Question b. Should the Cups line be retained? Explain. O Yes O No As indicated by the differential analysis in part (a), the income will by if the Cups line is discontinuedStep by Step Solution
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