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he 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 1 Bowls Plates $70,960.00 $105,450.00 Cups $31,760.00 16,710.00 32,990.00 42,680.00 2 Sales 1 Cost of goods sold * Gross profit Selling and administrative expenses 6 Income from operations $62,770.00 $15,050.00 $37,970.00 27,350.00 $10,620.00 42,530.00 16,670.00 $20,240.00 $(1,620.00) Fixed costs are 30% of the cost of goods sold and 50% of the selling and administrative expenses. Dish N' Dat assumes that fixec costs would not be materially affected if the Cups line were discontinued. Required: a. Prepare a differential analysis dated March 31 to determine il Cups should be continued (Alternative 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon () will automatically appear if required. b. Should the Cups line be retained? Explain. Differential Analysis Shaded cells have feedback. a. Prepare a differential analysis dated March 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign, If there is no amount or an amount is zero, enter "O". A colon () will automatically appear if required. Score: 56789 Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Cups March 31 Differential Effect 1 Continue Cups Discontinue Cups on Income Alham Differential Analysis Shaded cells have feedback. X Differential Analysis Score: 56/89 Continue (Alternative 1) or Discontinue (Alternative 2) Cups March 31 Differential Effect Continue Cups Discontinue Cups on Income (Alternative 1) (Alternative 2) (Alternative 2) $31,760.00 $0.00 $(31,760.00) 1 2 3 Revenues 4 Costs: 5 28,041.50 0.00 28,041.50 6 Variable cost of goods sold Variable selling and administrative expenses Fixed costs 16,410.00 0.00 16,410.00 7 15,888.50 15,888.50 0.00 8 Income (loss) $(29,101.50) $(15,888.50) $12,691.50 Final Question Shaded cells have feedback. b. Should the Cups line be retained? Explain. No Yes Points: 1/1 As indicated by the differential analysis in part (a), the income will decrease by $12,691.50 X if the Cups line is discontinued. Points: 1/2

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