The condensed product-line income statement for Porcelain Tableware Company is as follows: PORCELAIN TABLEWARE COMPANY Product-Line Income Statement Bowls Plates Cups Sales $645,000 $897,000 $279,000 Cost of goods sold (265,000) (329,000) (153,000) $380,000 $568,000 $126,000 Gross profit Selling and administrative expenses Operating Income (loss) (302,000) (344,000) (163,000) $78,000 $224,000 $(37,000) Fixed costs are 41% of the cost of goods sold and 14% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be si affected if the Cups line were discontinued. a. Prepare a differential analysis report for all three products. PORCELAIN TABLEWARE COMPANY Product Income Differential Analysis Report Bowls Cups Differential revenue from monthly sales: Plates Operating income (loss) $78,000 $224,000 ${37,000) Fixed costs are 41% of the cast of goods sold and 14% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be significantly affected if the Cups line were discontinued a. Prepare a differential analysis report for all three products. PORCELAIN TABLEWARE COMPANY Product Income Differential Analysis Report Bowls Plates Differential revenue from monthly sales: Cups Accounts receivable Cash Fixed selling and administrative expenses Revenue from sales Variable cost of goods sold b. Which of the following statements about the Cups line is true affected if the Cups line were discontinued. a. Prepare a differential analysis report for all three products. PORCELAIN TABLEWARE COMPANY Product Income Differential Analysis Report Bowls Plates Differential revenue from monthly sales: Cups