Mastery Problem: Differential Analysis and Product Pricing Woolcerp Wool Corp burs sheep's wool from fermers. The compeny began operations in zanuery of this year, and is makng decisions on product offerings, pricing, and venders. The company is aiso examining its method of assigning averhesd to products. You ve just been hired as a produetion manager at Woolcorp. Cutrently woolGorp makes three products: (2) raw, ciesn wool to be used as stuffing or insulation; (2) wool yam for use in the teatile industry, end (3) extre-thick yorn for use in rugs. Upper management would like your recommendations regarding o production decision regarding their current and proposed product lines. Continue/Discontinue For the past year, Woolcorp has experimented with its third product, extraithick nug yarn. The company wishes to consider whether to continue or discontinue manufacturing and selling this product. You decide to prepare a dilferential aralysas of the income related to all three procucts. To begin your anaivsis, you review the following candensed income statement. Then scroll dowi complete the differential analysis. WoolCorp Condensed Income Statement For the Year Ended December 31, 20 Y8 Complete the following table usha the data in the preceding income statement to compare the effects of droppigg the rug yam line of products, If requred, uie a minus sign to indicate a losn. Differential Analysis Continse Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31.20y8 Final Questions Answer the following evestion (1), then fill in table (2)