A condensed Income statement by product line for British Beverage Inc. indicated the following for Royal Cola for the past year: Sales $236,300 Cost of goods sold 108,000 Gross profit $128,300 Operating expenses 144,000 Loss from operations $05,700) It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 18% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. a. Prepare a differential analysis, dated March 3, to determine whether to Continue Royal Cola (Alternative 1} or Discontinue Royal Cola (Alternative 2}. If an amount is zero, enter zero "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue Royal Cola (Alt. 1) or Discontinue Royal Cola (Alt. 2) March 3 Continue Royal Discontinue Royal Differential Effects Cola (Alternative 1) Cola (Alternative 2) (Alternative 2) $ $ $ Revenues Costs: Variable cost of goods sold Variable operating expenses Fixed costs Profit (loss) b. Should King Cola be retained? Explain. As indicated by the differential analysis in part {A}, the income would by $ if the product is discontinued