Answer Happy

Dish N' Dat Company Product-Line Income Statement For the Month Ended March 31 Bowls Plates Cups Sales 564,000 $89,900 $26,700 Cost of goods sold 27,000 33,100 15,500 Gross pront $37,000 $56,800 $11,200 Selling and administrative expenses 28,600 34,400 15,800 Income from operations $8,400 $22,400 $(4,600) Fixed costs are 16% of the cost of goods sold and 37% of the selling and administrative expenses. Dish N' Dat assumes that fixed costs would not be materially affected it the Cups line were discontinued . Prepare a differential analysis dated Marth 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter *o" Use a minus sign to indicate a loss. Differential Analysis Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2) March 31 Continue Cups (Alternative 1) Discontinue Cups (Alternative 2) Differential Effect on income (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs pool Du 0 |D DDDD Income (LOS)