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Instructions The condensed product-line income statement for Dish N' Dat Company for the month of March is as follows: Dish N' Dat Company Product-Line Income
Instructions The condensed product-line income statement for Dish N' Dat Company for the month of March is as follows: Dish N' Dat Company Product-Line Income Statement For the Month Ended March 31 1 Bowls Plates 1 Sales $70,530,00 Cups $31,170.00 $105,840.00 3 Cost of goods sold 32,650.00 17,180.00 42.010.00 $63,830.00 $37,880.00 $13,990.00 4 Gross profit 5 Selling and administrative expenses 27,360.00 42,340.00 16,640.00 6 Income from operations $10,520.00 $21,490.00 $(2,650.00) Required: a. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you mu. enter subtracted or negative numbers use a minus sign. I there is no amount or an amount is zero, enter "o". A colon () will automatically appear if required b. Should the Cups line be retained? Explain Differential Analysis Score: 56/89 Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Cups March 31 1 Continue Cups Discontinue Cups 2 Differential Effect on Income (Alternative 2) $(31,170.00) (Alternative 2) 3 Revenues (Alternative 1) $31,170.00 $0.00 4 Costs: V 5 Variable cost of goods sold Variable selling and administrative expenses 15,462.00 6 (8,320.00) 2 (15,462.00) (8,320.00) (7.142.00) $(2,650.00) Fixed costs + Income (loss) 10,038.00 $(10,038.00) $(7,388.00) udbu b. Should the Cups line be retained? Explain. No Yes Points As indicated by the differential analysis in part (ay, the income will decrease V by s the Cups line is discontinued Points 1/2
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