A condensed Income statement by product line for British Beverage Inc. Indicated the following for King Cole for the past year Sales $233,800 Cost of goods sold (112,000) Gross profit $121,800 Operating expenses (343,000) Operating loss 5(21,200) It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fred. Since king Cola is only one of many products, the field costs will not be significantly affected if the product is discontinued a. Prepare a differential analysis report for the proposed discontinuance of King Cola British Beverage Inc. Proposal to Discontinue King Cola Differential Analysis Report Differential revenue from annual sales of King Cole: Revenue from sales 213 Differential cost of annual sales of King Cola: Variable cost of goods sold 9.440 x Variable operating expenses 115.100 X Annual differential income from sales of King Cola od TA