PROBLE hull 1 __ The condensed product-line income statement for Nueman Tableware Company for the month of December is as follows: CUE Bowls Plates Sales $20,911) $65,111!) $39,400 Less: Cost of Goods Sold 44,800 26, 300 32,800 Gross Profit $12,100 $38,300 $56,600 Less: Selling and Administrative Expenses -15,400 -29,400 64,900 NetlncomelLoss] [$3,300] $9,300 $21,100 Fixed Costs are 15% of the cost of goods sold and 40% of the selling and administrative expenses. Nueman Tableware assumes that fixed costs would not be materially affected if the Cups line were discontinued. RE! lUIRED: 1. Prepare a differential analysis for December to determine if the Cups line should he continued or discontinued. 2. From your analysis in Requirement 1, should the Cups line be retained? PROBLEM 2 Murray Company has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $40,\