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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
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 $70,960.00 $105.450.00 $31,760.00 Cost of goods sold 32,990.00 42,680.00 16,710.00 Gross profit $37,970.00 27,350,00 $62,770.00 42,530.00 $20,240.00 $15,050.00 16,670.00 Selling and administrative expenses 6 Income from operations $10,620.00 5(1,620.00) Foxed costs are 30% of the cost of goods sold and 50% of the selling and administrative expenses. Dish N Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. Required: a. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued Armative ? Refer to the lists of labels and Amount Descriptions for the exact wording of the answer choices for text 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 automatica Differential Analysis Continue (Alternative 1) or Discontinue Alternative 2) Cups March 31 Differential Effect Continue Cups Discontinue Cups on Income (Alternative 1) 531,760.00 (Alternative 2) $0.00 (Alternative 2) $(51,760.00) Revenues Costs 5 Variable cost of goods sold 0.00 6 Variable selling and administrative expenses Fixed costs Income (loss) Check My Work All work saved
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