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PORCELAIN TABLEWARE COMPANY Product-Line Income Statement Bowls Plates Cups Accounting numeric field Sales $649,000 $886,000 $279,000 Cost of goods sold (257,000) (321,000) (158,000) Gross profit
PORCELAIN TABLEWARE COMPANY Product-Line Income Statement Bowls Plates Cups Accounting numeric field Sales $649,000 $886,000 $279,000 Cost of goods sold (257,000) (321,000) (158,000) Gross profit $392,000 $565,000 $121,000 Selling and administrative expenses (297,000) (343,000) (158,000) Operating income (loss) $95,000 $222,000 $(37,000) Fixed costs are 41% of the cost of goods sold and 15% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be significantly affected if the Cups line were discontinued. a. Prepare a differential analysis report for all three products. PORCELAIN TABLEWARE COMPANY Product Income Differential Analysis Report Bowls Plates Cups Differential revenue from monthly sales: Revenue from sales $ Differential costs of monthly sales: Variable cost of goods sold Variable selling and administrative expenses Monthly differential income from sales $
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