Sales	$64,500			$90,100			$27,400
Cost of goods sold	(25,800)			(31,900)			(14,000)
Gross profit	$38,700			$58,200			$13,400
Selling and administrative expenses	(29,200)			(35,600)			(15,600)
Operating income (loss)	$9,500			$22,600			$(2,200)

Fixed costs are 12% of the cost of goods sold and 40% of the selling and administrative expenses. Rhinebeck Company 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 if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.

Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31

	Continue Mufflers (Alternative 1)	Discontinue Mufflers (Alternative 2)	Differential Effects (Alternative 2)
Revenues	$fill in the blank 230dd408b04800f_1	$fill in the blank 230dd408b04800f_2	$fill in the blank 230dd408b04800f_3
Costs:
Variable cost of goods sold	fill in the blank 230dd408b04800f_4	fill in the blank 230dd408b04800f_5	fill in the blank 230dd408b04800f_6
Variable selling and admin. expenses	fill in the blank 230dd408b04800f_7	fill in the blank 230dd408b04800f_8	fill in the blank 230dd408b04800f_9
Fixed costs	fill in the blank 230dd408b04800f_10	fill in the blank 230dd408b04800f_11	fill in the blank 230dd408b04800f_12
Profit (Loss)