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 Bowls Plates Cups Sales $64,300 $89,200 $27,800 Cost of goods sold 25,700 32,400 14,400 Gross profit $38,600 $56,800 $13,400 Selling and administrative expenses Income from operations 29,300 $9,300 34,500 $22,300 16,100 $(2,700) Fixed costs are 13% of the cost of goods sold and 43% 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. Revenues Costs: Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) For the Month Ended May 31 Differential Effect Variable cost of goods sold Variable selling and admin. expenses Fixed costs Income (Loss) Feedback Continue Cups (Alternative 1) Discontinue Cups (Alternative 2) on Income (Alternative 2) 0 b. Should the Cups line be retained? Explain. Yes 0 0 As indicated by the differential analysis in part (a), the income will decrease by: if the Cups line is discontinued.