Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $64,000 589,700 $27,100 Cost of goods sold (25,900) (33,600) (14,100) Gross profit $38,100 $56,100 $13,000 Selling and administrative expenses (29,700) (34,300) (14,500) Operating income (loss) $8,400 $21,800 $(1.500) Foxed costs are 16% of the cost of goods sold and 42% of the selling and administrative expenses. Rhinebeck Corppany assumes that fixed costs would not be materially affected if the Gloves line were discontinued a. Prepare a differential analysis dated October 31 to determine Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "O". If required, use a minussion to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Continue Discontinue Differential Mufflers Mufflers Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Casts: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Prefit (24)