relevant revenues and costs refer t

Product is one of the many products manufactured and sold by Oceanside Company. An income statement by product line for the past year indicated a net loss for Product of $2,750. This net loss resulted from sales of $275,000, cost of goods sold of $186,500, and operating expenses of $85,750. It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 10% of the operating expense is fixed. If Products retained, the revenue, costs, and expenses are not expected to change significantly from those of the current year. Because of the large number of products manufactured, the total fixed costs and expenses are not expected to decline significantly if Product) is discontinued. Prepare a differential analysis report, dated February 8 of the current year, on the proposal to discontinue Product ). If an amount box does not require an entry, leave it blank. Differential Analysis Proposal to Discontinue Product ) February B Continue Product) Discontinue Product Differential Effect on Income Costs Total costs Income (loss)