The condensed product-line income statement for Suffolk China Ware Company for the month of December is as follows: Suffolk China Ware Company Product-Line Income Statement For the Month Ended December 31, 2010 Bowls Plates Cups Sales $54,000 $68,500 $24,500 Cost of goods sold 22,400 31,700 11,900 Gross profit $31,600 $36,800 $12,600 Selling and administrative expenses 28,300 25,300 20,400 Income (loss) from operations $ 3,300 $11,500 $(7,800) Exercise 24(09)-3				Name:
				Section:
Enter the appropriate amount or answer in the shaded cells below.
A red asterisk (*) will appear to the right of an incorrect answer in the outlined cells.
a.
		SUFFOLK CHINA WARE COMPANY
		Differential Product Analysis Report
		For the Year Ended December 31, 2010
				Bowls		Plates		Cups
		Differential revenue from annual sales:
		Revenues from sales
		Differential cost of annual sales:
		Variable cost of goods sold
		Variable selling and administrative expenses
		Total Variable Costs
		Annual differential income from sales
b.
		Should the cups be retained?

Data Below