The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck CompanyProduct-Line Income StatementFor the Month Ended October 31 Hats Gloves Mufflers Sales $64,400 $89,400 $26,000 Cost of goods sold (26,400) (32,000) (15,100) Gross profit $38,000 $57,400 $10,900 Selling and administrative expenses (30,200) (34,200) (15,200) Operating income (loss) $7,800 $23,200 $(4,300) Fixed costs are 15% of the cost of goods sold and 35% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a.Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.

The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves...

The condensed product-line income statement for Rhinebeck Company for the month of October is as follows:

Rhinebeck Company Product-Line Income Statement For the Month Ended October 31
	Hats	Gloves		Mufflers
Sales	$64,400		$89,400		$26,000
Cost of goods sold	(26,400)		(32,000)		(15,100)
Gross profit	$38,000		$57,400		$10,900
Selling and administrative expenses	(30,200)		(34,200)		(15,200)
Operating income (loss)	$7,800		$23,200		$(4,300)

Fixed costs are 15% of the cost of goods sold and 35% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued.

a.Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.

Jun 02, 2022

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The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves...

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