CengageNOWv2| Online teachin x p enter cengagenow h X My Home signment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator3D&inprogress3Dfalse eBook Calculator On the baIS or the Tomowmg dato unyenerarmanager income by $30,000. Hawkeye Shoes Inc. Product-Line Income Statement For the Year Ended November 30, 20Y8 Children's Shoes Men's Shoes Women's Shoes Total Sales $280,000 $300,000 $500,000 $1,080,000 Costs of goods sold: Variable costs $(135,000) $(150,000) $(220,000) $(505,000) Fixed costs (45,000) (60,000) (120,000) (225,000) Total cost of goods sold $(180,000) $(210,000) $(340,000) $(730,000) Gross profit $100,000 $90,000 $160,000 $350,000 Selling and administrative expenses: Variable selling and admin. expenses $(100,000) $(45,000) $(95,000) $(240,000) Fixed selling and admin. expenses (30,000) (20,000) (25,000) (75,000) Total selling and admin. expenses $(130,000) $(65,000) $(120,000) $(315,000) Operating income (loss) $(30,000) $25,000 $40,000 $35,000 a. Prepare a differential analysis to determine the flaw in the general manager's decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Difforontial Analycic Check My Work 5 more Check My Work uses remaining. Previous Next 7:07 PM 4/18/2020 ×p ツ F5 F6 F7 F8 F9 F10 E11 *CengageNOWv2 | Online teachin X to enter cengagenow h X My Home ssignment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=D&inprogress%3Dfalse E Calculator eBook operaung mcome (OSS a. Prepare a differential analysis to determine the flaw in the general manager's decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Children's Shoes November 30 Discontinue Continue Children's Shoes Children's Shoes (Alternative 1) Differential Effects (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) b. What is the flaw in the decision to discontinue Children's Shoes, if it is assumed fixed costs would not be materially affected by the discontinuance? The general manager is not focusing on the differential revenues and costs. V If the children's Shoes are discontinued, the company's loss would increase v by S Feedback Check My Work 5 more Check My Work uses remaining. Previous Next 7:07 PM 4/18/2020 F5 F6 F7 F8 F9 F10 BID F11 F12 Home End Insert Delet SysRa