WoolCorp Wool Cerp buy theep's wool trom Farmers. The company began operations in January of this year, and is making dedsions on product offerings, pricing, and vendors. The company is also examining its method of signing overhead to products. You've just been hired as a production manager at WoolCorp. Currently Wookaro makes three products: (1) ram, tiean wood to be used as stuffing or Insulation; (2) wool yarn for use in the textile Industry, and (3) extra-thick var for use in rugs. under management would the your recommendations regarding a production diction regarding their current and proposed product lines. Continue/Discontinue For the past year. WooCorps experimented with its third product, extra-thick rug van. The company wishes to consider whether to continue or discontinue manufacturing and selling this product You tedde to prepare a differential analysis of the income related to all three products. To begin your analysis, vou review the following condensed Income statement. Then scroll down to complete the differential WoolCorp Condensed Income Statement For the Year Ended December 31, 2018 Raw Wool Wool Yarn Rug Yarn $200,000 3155,000 $197.000 Sales Costs of goods sold: Total Company 3552,000 WoolCorp Condensed Income Statement For the Year Ended December 31, 2048 Raw Wool Wool Yarn Rug Yarn Total Company Sales $200,000 $155,000 $197,000 $552,000 Costs of goods sold: Variable costs ${48,000) $(18,600) $(37,150) $(103,750) Fixed costs (32,000) (12,400) (24,790) (69,190) Total cost of goods sold $(80,000) $(31,000) $(61,940) $(172,940) Gross profit $120,000 $124,000 $135,060 $379,060 Operating expenses Variable expenses $(5,000) $(7,750) 3(53,100) $(65,850) Fixed expenses (89,000) (77,000) (106,200) (272,200) Total operating expenses $(94,000) $(84,750) $(159,300) $(338,050) Operating Income (loss) $26,000 $39.250 $(24,240) $41,010 Complete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of produ Differential Analysis Complete the following table in the data in the preceding income statement to compare the effects of dropping the rue yarn line of products. If required, use a minussion to indicate a loss Differential Analysis Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 2048 Continue Rug Yarn (Alternativet) Discontinue Rug Yarn (Alternative 2) Differential Effects (Alternative 2) Bevens Costs Variable Ford in 001 Petite Final Ouestions Answer the following ustion (1), then it in table (2) 1. atter viewing vour work on the continue tocontre paret, should walcorp continue (Altumative 1) or discontinue (Alternative z lehe rug yarn product line? 2. The following table shows a business decisions that might need to be made across the top row. Along the best-hand column, there are important factors to consider Select the art that we important to the decision Select all that of the factor is not important to any of the decisions, select "ves on the trot Important dropdown, otherwise select no. Lease or Sell or Special Price Continue or Production Sell Process Further Order Make or Buy Discontinue Hottleneck Important Imad on ear rites Not Charm Not 2. The fallowing table than several business decisions that might need to be made across the top row. Along the left and column, there are important factors to consider Select the far() that are important to the decision: Select all that apply. If the factor is not important to any of the decisions, select "yes" on the "Not important" dropdown, otherwise select no. Lease or Special Price Continue or Production Sell Process Further Order Make or Buy Discontinue Bottleneck Important Impact on our pro Contribution margin per bonek hour is more Suole prise than Waralable cost per