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	$65,900			$89,700			$26,400
Cost of goods sold	26,300			32,100			14,500
Gross profit	$39,600			$57,600			$11,900
Selling and administrative expenses	29,700			35,000			15,300
Income from operations	$9,900			$22,600			$(3,400)

Fixed costs are 13% of the cost of goods sold and 40% 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 whether to Continue Cups (Alternative 1) or Discontinue Cups (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
	Continue Cups (Alternative 1)	Discontinue Cups (Alternative 2)	Differential Effect (Alternative 2)
Revenues	$fill in the blank 83ce06f68fa9ff6_1	$fill in the blank 83ce06f68fa9ff6_2	$fill in the blank 83ce06f68fa9ff6_3
Costs:
Variable cost of goods sold	fill in the blank 83ce06f68fa9ff6_4	fill in the blank 83ce06f68fa9ff6_5	fill in the blank 83ce06f68fa9ff6_6
Variable selling and admin. expenses	fill in the blank 83ce06f68fa9ff6_7	fill in the blank 83ce06f68fa9ff6_8	fill in the blank 83ce06f68fa9ff6_9
Fixed costs	fill in the blank 83ce06f68fa9ff6_10	fill in the blank 83ce06f68fa9ff6_11	fill in the blank 83ce06f68fa9ff6_12
Profit (loss)	$fill in the blank 83ce06f68fa9ff6_13	$fill in the blank 83ce06f68fa9ff6_14	$fill in the blank 83ce06f68fa9ff6_15

b. Should the Cups line be retained? Explain.

As indicated by the differential analysis in part (a), the income will by $fill in the blank 342672fe1f8bf8d_3 if the Cups line is discontinued.