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Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Fixed costs are 17% of the cost of goods sold and 39% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1 ) or discontinued (Alternative 2). If an amount is zero, enter " 0 ". If required, use a minus sign to indicate a loss. Differential Analysis
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