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  3. the condensed product-line income statement for su

The condensed product-line income statement for Suffolk China Ware Company is as follows: SUFFOLK CHINA...

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The condensed product-line income statement for Suffolk China Ware Company is as follows: SUFFOLK CHINA WARE COMPANY Product-Line Income Statement Sales Cost of goods sold Gross profit Selling and administrative expenses Operating income (loss) Bowls 5642,000 (265,000) $377,000 (296,000) 531,000 Plates $885,000 (324,000) $561,000 (356,000) $205,000 Cups $259,000 (143,000) $116,000 (152,000) $(36,000) Fixed costs are 35% of the cost of goods sold and 16% of the selling and administrative expenses. Suffolk China Ware assumes that fixed costs would not be significantly affected if the Cups line were discontinued. a. Prepare a differential analysis report for all three products. SUFFOLK CHINA WARE COMPANY Product Income Differential Analysis R Bowls Plates Cups Differential revenue from monthly sales: Revenue from sales Differential costs of monthly sales: Variable cost of goods sold Variable selling and administrative Monthly differential income from sales

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