Answer:
A) Differential analysis is shown below
B) its product should be continue.
Explanation:
As per the data given in the question,
a)
                       Continue product          Discontinue product        Differential
                         Tango(Alt 1)                       Tango(Alt 2)               Effects (Alt 2)
Revenue         $1,150,000                                $0                      -$1,150,000
Costs:
Variable COG Sold -$850,000                       $0                        $850,000
Variable selling and admin expenses  -$275,000     $0           $850,000
Fixed costs     -$125,000                                  $0                        $275,000
Profit(Loss)      -$100,000                                -$125,000            -$25,000
b)
As per analysis discontinuance of product Tango will enhance the amount of loss by $25,000, so it is recommended to continue the operation.