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

The condensed product-line income statement for Porcelain Tableware Company is as follows: PORCELAIN TABLEWARE COMPANY Product-Line Income Statement Bowls Plates Cups Sales $650,000 $900,000 $270,000 Cost of goods sold (264,000) (323,000) (158,000) Gross profit $386,000 $577,000 $112,000 Selling and administrative expenses (298,000) (359,000) (154,000) Operating Income (loss) $88,000 $218,000 $(42,000) Fixed costs are 42% of the cost of goods sold and 13% 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 Differential revenue from monthly sales: Revenue from sales Plates Cups Differential costs of monthly sales: Variable cost of goods sold Variable selling and administrative expenses 0000 $ Monthly differential income from sales Feedback b. Which of the following statements about the Cups line is true? The Cups line should be retained, because the total income for the company would decrease by excess of differential revenue over differential cost if the Cups line is disc