my work Lamothe Kitchen and Bath makes products for the home, which it sells through major...

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my work Lamothe Kitchen and Bath makes products for the home, which it sells through major retailers and remodeling (do-it-yourself, or DIY) outlets. One product that has had varying success is a ceiling fan for the kitchen. The fan comes in three sizes (36-Inch, 44-Inch, and 54-Inch), which are designed for various kitchen sizes and cooling requirements. The chief financial officer (CFO) at Lamothe has been looking at the segmented income statement for the fan and is concerned about the results for the 36-inch model. Revenues 36 Inch $ 385,500 Variable costs Fixed costs allocated to products Operating profit (loss) 238,600 154,230 44 Inch $ 589,100 292,680 232,464 54 Inch $ 366,900 170,500 145,806 $ (7,330) $ 63,956 $ 50,594 If the 36-Inch model is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 25 percent. Required: a. Prepare a differential cost schedule to support your recommendation. b. Should Lamothe Kitchen and Bath should drop the 36-Inch model product line? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a differential cost schedule to support your recommendation. (Select option "increase" Quo as the base. Select "none" if there is no effect.) Alternative: Drop Status Quo Difference 36-Inch Fan my work Lamothe Kitchen and Bath makes products for the home, which it sells through major retailers and remodeling (do-it-yourself, or DIY) outlets. One product that has had varying success is a ceiling fan for the kitchen. The fan comes in three sizes (36-Inch, 44-Inch, and 54-Inch), which are designed for various kitchen sizes and cooling requirements. The chief financial officer (CFO) at Lamothe has been looking at the segmented income statement for the fan and is concerned about the results for the 36-inch model. Revenues 36 Inch $ 385,500 Variable costs Fixed costs allocated to products Operating profit (loss) 238,600 154,230 44 Inch $ 589,100 292,680 232,464 54 Inch $ 366,900 170,500 145,806 $ (7,330) $ 63,956 $ 50,594 If the 36-Inch model is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 25 percent. Required: a. Prepare a differential cost schedule to support your recommendation. b. Should Lamothe Kitchen and Bath should drop the 36-Inch model product line? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a differential cost schedule to support your recommendation. (Select option "increase" Quo as the base. Select "none" if there is no effect.) Alternative: Drop Status Quo Difference 36-Inch Fan