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 $65,200 $90,000 $26,100 Cost of goods sold 26,800 31,900 15,400 Gross profit $38,400 $58,100 $10,700 Selling and administrative expenses 28,900 34,300 16,300 Income from operations $9,500 $23,800 $(5,600) Fixed costs are 14% 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 Cupstine were discontinued 3. 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 :) (Alternative 2) (Alternative 2) 7.0 X 470 X Revenues Costs Variable cost of goods sold Variable selling and admin, expenses X X 679 X Fixed costs b. Should the Cups line be retained? Explain. Yes As indicated by the differential analysis in part (a), the income will decrease by if the Cups line is discontinued