Differential Analysis Report for a Discontinued Product The condensed product-line income statement for Porcelain Tableware Company...

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Differential Analysis Report for a Discontinued Product The condensed product-line income statement for Porcelain Tableware C

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Answer 1

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Differential analysis Report
Differential revenue from monthly sales:	Bowls	Plates	Cups
Revenue from sales	649000	895000	276000
Differential costs of monthly sales:
Variable cost of goods sold 65%	166400	217750	96200
Variable selling & administrative expenses 83%	241530	289670	125330
Total variable expenses	407930	507420	221530
Monthly differential income from sales	241070	387580	54470

b) Cup line should retain because of profit $54470

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Answer 2

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