1. 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	$64,300			$89,900			$26,400
   Cost of goods sold	(25,900)			(33,400)			(15,600)
   Gross profit	$38,400			$56,500			$10,800
   Selling and administrative expenses	(30,100)			(34,500)			(16,400)
   Operating income (loss)	$8,300			$22,000			$(5,600)

   Fixed costs are 16% 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 "0". If required, use a minus sign to indicate a loss.

   Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31

   	Continue Mufflers (Alternative 1)	Discontinue Mufflers (Alternative 2)	Differential Effects (Alternative 2)
   Revenues	$fill in the blank 7c90b5f91067ff7_1	$fill in the blank 7c90b5f91067ff7_2	$fill in the blank 7c90b5f91067ff7_3
   Costs:
   Variable cost of goods sold	fill in the blank 7c90b5f91067ff7_4	fill in the blank 7c90b5f91067ff7_5	fill in the blank 7c90b5f91067ff7_6
   Variable selling and admin. expenses	fill in the blank 7c90b5f91067ff7_7	fill in the blank 7c90b5f91067ff7_8	fill in the blank 7c90b5f91067ff7_9
   Fixed costs	fill in the blank 7c90b5f91067ff7_10	fill in the blank 7c90b5f91067ff7_11	fill in the blank 7c90b5f91067ff7_12
   Profit (Loss)	$fill in the blank 7c90b5f91067ff7_13	$fill in the blank 7c90b5f91067ff7_14	$fill in the blank 7c90b5f91067ff7_15