wat les . x 254 Diana The end Maroon SHOW SU Control 1 Seling Pand cons and the the peut do dhe Cups in www hep a dana da ich to Coupe A Due Cup should the Gupse betaal EX 25-4 Differential analysis for a discontinued product OBJ. 1 The condensed product-line income statement for Dish N' Dat Company for the month of May is as follows: Dish N' Dat Company Product-Line Income Statement For the Month Ended May 31 Bowls Sales $92,300 Cost of goods sold 42,300 Gross profit $50,000 Selling and administrative expenses 35,600 Income from operations $14,400 Plates $137.400 55,000 $ 82,400 55,600 $ 26,800 Cups $43,500 26,700 $16,800 22,400 $(5,600 Fixed costs are 15% of the cost of goods sold and 25% of the selling and administra tive expenses. Dish N' Dat assumes that fixed costs would not be materially affected i the Cups line were discontinued. a. Prepare a differential analysis dated May 31 to determine whether to continue Cup (Alternative 1) or Discontinue Cups (Alternative 2). Should the Cups line be retained? Explain. b