The condensed product-line income statement for Suffolk China Ware Company is as follows:
SUFFOLK CHINA WARE COMPANY
Product-Line Income Statement
Light
Roast Medium
Roast Dark
Roast
Sales $659,000 $884,000 $272,000 Cost of goods sold (261,000) (333,000) (149,000) Gross profit $398,000 $551,000 $123,000 Selling and administrative expenses (291,000) (355,000) (155,000) Operating income (loss) $107,000 $196,000 $(32,000) Fixed costs are 41% of the cost of goods sold and 14% of the selling and administrative expenses. Suffolk China Ware assumes that fixed costs would not be significantly affected if the Dark Roast line were discontinued.
Question Content Area
a. Prepare a differential analysis report for all three products.