X Continue/Discontinue Shaded cells have feedback For the past year, WoolCorp has experimented with its third product, extra-thick rug yarn. The company wishes to consider whether to continue or discontinue manufacturing and selling this product. You decide to prepare a differential analysis of the income related to all three products. To begin your analysis, you review the following condensed income statement. Then scroll down to complete the differential analysis. WoolCorp Condensed Income Statement For the Year Ended December 31, 20Y8 Total Wool Yarn 1 Raw Wool Rug Yarn Company $210,000.00 $155,000.00 $187,000.00 $52,000.00 2 Sales 3 Cost of goods sold: $48,000.00 $18,600.00 $37,170.00 $103,770.00 4 Variable costs 5 Fixed costs 12,400.00 32,000.00 24,800.00 69,200.00 Total cost of goods sold $80,000.00 $31,000.00 $61,970.00 $172,970.00 6 $130,000.00 $124,000.00 $125,030.00 $379,030.00 7 Gross profit 8 Operating expenses: $5,000.00 $7,750.00 $53,120.00 $65,870.00 9 Variable expenses 10 Fixed expenses 89,000.00 77,500.00 106,200.00 272,700.00 $94,000.00 $85,250.00 $159,320.00 $338,570.00 Total operating expenses 11 $36,000.00 $38,750.00 $(34,290.00) $40,460.00 12 Income (loss) from operations Complete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of products. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If an amount is zero, enter "0" Differential Analysis Score: 21/46 Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 20Y8 Differential Discontinue Rug Yarn (Alternative Continue Rug Yarn Effect on 1 (Alternative 1) Income (Alternative 2) 2) $0.00 2 Revenues 3 Costs: $0.00 4 Variable 0.00 5 Fixed 6 Income (Loss) Points: 5.48 / 12