Sau egg Library MGmail Hawkes Learning Thesaurus WEPA VitalSource CB YouTube Other eBook Dish N' Dat Company Product-Line Income Statement For the Month Ended May 31 Bowls Plates Cups Sales $92,300 $137,400 $43,500 42,300 55,000 26,700 $50,000 $82,400 $16,800 Cost of goods sold Gross profit Selling and administrative expenses Income from operations 35,600 55,600 22,400 $14,400 $26,800 $(5,600) Fixed costs are 15% of the cost of goods sold and 25% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated May 31 to determine whether to Continue Cups (Alternative 1) or Discontinue Cups (Alternative 2). If an amount is zero, enter "o". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) For the Month Ended May 31 Continue Cups Discontinue Cups Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues 43,500 0 -43.500 Costs: 10:24 PM 4/15/2021 eBook Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) For the Month Ended May 31 Continue Cups Discontinue Cups (Alternative 1) (Alternative 2) Revenues 43,500 $ Costs: Variable cost of goods sold -22,695 Variable selling and admin. expenses - 16,800 Fixed costs -8.250 X Differential Effects (Alternative 2) $ -43,500 0 0 22.695 0 16,800 Profit (loss) Feedback Y Check My Work For continue and discontinue alternatives subtract the costs from the revenue. Use percentages to separate variable from fixed costs. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. b. Should the Cups line be retained? Explain. Yes