The condensed product- line income statement for Dish N Dat Company for the month of March is as follows:
Differential analysis for a discontinued product Final Question Differential Analysis Instructions Labels and Amount Descriptions Instructions The condensed product-line inoome statement for Dish N' Dat Company for the month of March is as follows: Dish N' Dat Company Product-Line Income Statement For the Month Ended March 31, 2016 Cups Plates Bowls 1 $105,450.00 $31,080.00 $71,450.00 2 Sales 32,370 00 42,660.00 17150.00 Cost of goods sold $62,790.00 $13,950.00 4Gross profit $39,080.00 42,750.00 16,200.00 27590.00 s Selling and administrative expenses $20,06000 $2,270.00 $11,490.00 6 Income from operations Fixed costs are 10 % of the cost of goods sold and 30 % of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materialy affected discontinued Required: Prepare a differential analysis dated March 31, 2016 to determine if Cups should be continued (Alternative 1) or discontinued (A/ternative 2) A Differential analysis for a discontinued product Differential Analysis Final Question Labels and Amount Descriptions Instructions Instructions Shaded cells have feedback Differential Analysis A Prepare a differential analysis dated March 31, 2016, to determine if Cups should be continued (Alternative 1) or discontinued (Altemative 2). Refer to the ists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0. A colon () will automatically appear if required Score: 35/89 Differential Analysis Continue Cups (Alternative 1) or Discontrue Cups (Alternative 2) March 31, 2016 Differential Discontinue Cups Continue Cups Effect on Income (Alternative 2) (Alternative 2) (Alternative 1) $31,080.00 $20798000 $176,900.00 3 Revenues 4 Costs 67,52700 15,435.00 82962.00 Variable cost of goods sold 49,224.00 11,340.00 60,56400 Variable selling and administrative expenses 0.00 35,17400 35,174.00 Fixed costs $24,975.00 $4,305.00 $29,280.00 Income (loss)