The condensed product-line income 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 Bowls Plates Cups Sales $65,900 $90,100 $27,100 Cost of goods sold 26,100 32,300 15,100 Gross profit $39,800 $57,800 $12,000 Selling and administrative expenses 30,200 34,500 16,000 Income from operations $9,600 $23,300 $(4,000) Fixed costs are 17% of the cost of goods sold and 45% 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 March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "o". Use a minus sign to indicate a loss. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups Discontinue Cups Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin expenses Fixed costs Income (LOSS) b. Should the Cups line be retained? 37 MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,180 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $90 per unit Factory overhead $199,600 Direct labor Selling and admin. exp. 70,400 Factory overhead Selling and admin. exp. Total variable cost per unit $171 per unit MyPhone desires a profit equal to a 15% rate of return on invested assets of $598,700. a. Determine the amount of desired profit from the production and sale of 5,180 units of cell phones. 25 19 b. Determine the product cost per unit for the production of 5,180 of cell phones. If required, round your answer to nearest dollar, per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones, % d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost per unit per unit Markup Selling price per unit