Chapter 24 Homework eBook Differential Analysis for a Discontinued Product 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 Sales Bowls Plates Cups $64,000 26,200 $37,800 28,700 $90,200 33,300 $56,900 $26,900 14,700 $12,200 $9,100 34,100 $22,800 16,100 $(3,900) Fixed costs are 16% of the cost of goods sold and 45% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups (Alternative 1) Discontinue Cups (Alternative 2) Differential Effect on Income (Alternative 2) Cost of goods sold Gross profit Selling and administrative expenses Income from operations Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Income (Loss)