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A condensed income statement by product line for British Beverage Inc. Indicated the following for King Cola for the past year: It is estimated that

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A condensed income statement by product line for British Beverage Inc. Indicated the following for King Cola for the past year: It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 20% of the operating expens fixed. Since King 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 King Cola should be continued (Alternative 1) or discon (Alternative 2). If an amount is zero, enter zero " 0 ". Use a minus sign to indicate a loss. Differential Analysis Continue King Cola (Alt. 1) or Discontinue King Cola (Alt. 2) January 21 Differential Analysis Continue King Cola (Alt. 1) or Discontinue King Cola (Alt. 2) January 21 b. Should Star Cola be retained? Explain. As indicated by the differential analysis in part (A), the income would by $ If the product is discontinued

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