Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Variable Cost = Cost of Goods Sold × (100 - Estimate Percentage of Cost of Good Sold) + Operating Expenses × ( 100 - Operating Expenses Fixed Percentage)  
= 186,500 × (100 - 30%) + 85,750 × (100 - 40%)
= 186,500 × 70÷100 + 85,750 × 60÷100 
= $130,550 + $51,450 
= $182,000
Fixed Cost= Cost of Goods Sold × Estimate Percentage of Cost of Good Sold + Operating Expenses × Operating Expenses Fixed Percentage 
= $186,500 × 30÷100 + $85,750 × 40÷100 
= $55,950 + $34,300 
= $90,250
Differential analysis
Particular  Product J continue   Product J discontinue  Difference on income
Sales             275,000                       0                      -275,000
Variable cost     182,000                       0                  182,000
Fixed cost    90,250                            90,250                        0
Income (Sales-Variable Cost-Fixed Cost)	2,750	-90,250	-93,000
According to the analysis, project J should not be discontinue because if project j discontinue variable cost doesn’t occur, but fixed costs still occur.