The condensed product-line income statement for Porcelain Tableware Company for the month of May is as follows:

Differential Analysis for a Discontinued Product The condensed product-line income statement for Porcelain Tableware Company for the month of May is as follows: Porcelain Tableware Company Product-Line Income Statement For the Month Ended May 31 Sales Bowls $65,100 25,400 Plates $89,200 32,300 Cups $27,900 15,000 $39,700 $56,900 $12,900 Cost of goods sold Gross profit Selling and administrative expenses 28,700 34,200 15,200 Income from operations $11,000 $22,700 $(2,300) Fixed costs are 13% of the cost of goods sold and 39% of the selling and administrative expenses. Porcelain Tableware 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 if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". 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 Differential Effect Continue Cups Discontinue Cups on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Gross profit $39,700 $56,900 $12,900 Selling and administrative 28,700 34,200 15,200 expenses Income from operations $11,000 $22,700 $(2,300) Fixed costs are 13% of the cost of goods sold and 39% of the selling and administrative expenses. Porcelain Tableware 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 if Cups should be continued (Alternative 1) or discontinued (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 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? Explain. As indicated by the differential analysis in part (a), the income will by $ if the Cups line is discontinued