The condensed product-line income statement for Dinner Ware Company is as follows:

DINNER WARE COMPANY Product-Line Income Statement
	Bowls			Plates			Cups
Sales	$1,500,000			$2,350,000			$975,000
Cost of goods sold	(900,000)			(1,400,000)			(780,000)
Gross profit	$600,000			$950,000			$195,000
Selling and administrative expenses	(270,000)			(700,000)			(300,000)
Operating income (loss)	$330,000			$250,000			$(105,000)

Fixed costs are 40% of the cost of goods sold and 18% of the selling and administrative expenses. Dinner Ware assumes that fixed costs would not be significantly affected if the Cups line were discontinued.

a. Prepare a differential analysis report for all three products.

Dinner Ware Company
Product Income
Differential Product Analysis Report
	Bowls	Plates	Cups
Differential revenue from monthly sales:
	$	$	$
Differential costs of monthly sales:
	$	$	$
	$	$	$
Monthly differential income from sales	$	$	$