The condensed product-line income statement for Rhinebeck Company for the month of October is as follows Rhinebeck Company Product Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $64,100 $89,800 $26,800 Cost of goods sold (26,100) (32,500) (14,100) Gross profit $38.000 $57,300 $12,700 Selling and administrative expenses (29,700) (34,800) (14,700) Operating income (loss) $8,300 $22,500 $12.000) Fixed costs are 13% of the cost of goods sold and 38% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "O". required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Continue Discontinue Differential Mufflers Mufflers Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs Variable cost of goods sold Variable selling and admin. expenses Fixed costs Proht (Loss)