The condensed product-line income statement for Porcelain Tableware Company is as follows:

PORCELAIN TABLEWARE COMPANY Product-Line Income Statement
	Bowls			Plates			Cups
Sales	$646,000			$893,000			$267,000
Cost of goods sold	(273,000)			(333,000)			(142,000)
Gross profit	$373,000			$560,000			$125,000
Selling and administrative expenses	(293,000)			(344,000)			(156,000)
Operating income (loss)	$80,000			$216,000			$(31,000)

Fixed costs are 37% of the cost of goods sold and 17% 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 Cups Differential revenue from monthly sales: Revenue from sales 646,000 893,000 267,000 Differential costs of monthly sales: Variable cost of goods sold Variable selling and administrative expenses $ $ bo Monthly differential income from sales $ $