WoolCorp Condensed Income Statement For the Year Ended December 31, 2048 Raw Wool Wool Yarn Rug Yarn Total Company Sales $210,000 $155,000 $167,000 $532,000 Costs of goods sold: Variable costs $(48,000) $(18,600) $(37,190) $(103,790) Fixed costs (32,000) (12,400) (24,800) (69,200) Total cost of goods sold $(80,000) $(31,000) $(61,990) $(172,990) Gross profit $130,000 $124,000 $105,010 $359,010 Operating expenses: Variable expenses $(5,000) $(7,750) $(53,110) $(65,860) Fixed expenses (89,000) (77,000) (106,200) (272,200) Total operating expenses $(94,000) $(84,750) $(159,310) $(338,060) Operating income (loss) $36,000 $39,250 $(54,300) $20,950 Complete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of products. If required, use a minus sign to indicate a loss. Differentialastuci Differential Analysis Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 2018 Continue Rug Yarn Disconti Rug Yarn Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues $ 177,000 X 0 -177.000 x Costs: Variable -90.290 X 0 90,290 X -130,990 -130,990 X 0 Fixed 44,280 -130,990 Profit (loss) -86,710 X