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Defferential Analyus for a Discentinued Product The condensed product-line income statement for Northern Lights Company for the month of August is as follows: Northern Lights Company Product-Line Inceme Statement For the Month Ended Auaust 31 Fixed costs are 16% of the cont of goods seid and 37% of the selling and adrinistrative experises. Northern Lights Campary assumes that fixed costs would not be materially affected if the Socks line were discominued. a. Prepare a dfferential analysis dated August 31 to determne if socks should be continued (Alternative 1) or dscontinued (Aiternative 2). If an amount is zero, enter 'O". If required, use a minus sign to indicate a loss. Chack My Work For continue and discontinue alternatives subtract the costs from the revenue. Use percentages to separate variable from fixed costs. Determine effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. b. Should the Socks line be retained? Fecaback check My Work For continue and discontinue alternatives subtract the costs from the revenue. Use percentages to separate variable from fixed costs. Determine effect on income of the revenues, costs, and income (ioss) by subtracting aiternative 1 from alternative 2