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  3. the condensed product-line income statement for bl

The condensed product-line income statement for Blonde Espresso Company is as follows: BLONDE ESPRESSO COMPANY...

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The condensed product-line income statement for Blonde Espresso Company is as follows: BLONDE ESPRESSO COMPANY Product-Line Income Statement Light Medium Roast Roast Dark Roast Sales Cost of goods sold Gross profit Selling and administrative expenses Operating income (loss) $750,000 (450,000) $ 300,000 (135,000) $ 165,000 $1,175,000 (700,000) $ 475,000 (350,000) $ 125,000 $ 487,500 (390,000) $ 97,500 (150,000) $ (52,500) Fixed costs are 40% of the cost of goods sold and 18% of the selling and administrative expenses. Blonde Espresso assumes that fixed costs would not be significantly affected if the Dark Roast line were discontinued. a. Prepare a differential analysis report for all three products. b. Should the Dark Roast line be retained? Explain

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