The condensed product-line income statement for Porcelain Tableware Company for the month of May is as follows:

Porcelain Tableware Company Product-Line Income Statement For the Month Ended May 31
	Bowls			Plates			Cups
Sales	$64,300			$88,900			$26,000
Cost of goods sold	26,200			32,700			15,100
Gross profit	$38,100			$56,200			$10,900
Selling and administrative expenses	30,400			33,900			15,100
Income from operations	$7,700			$22,300			$(4,200)

Fixed costs are 12% of the cost of goods sold and 40% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be materially affected if the Cups line were discontinued.

a. Prepare a differential analysis dated May 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Answer rating: 100% (QA)

Answer a Differential Analysis Porcelain Tableware Company Differential Analysis For the Month Ended May 31 Alternative 1 Continue Cups Alternative 2 ... View the full answer