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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
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 16% of the cost of goods sold represents fixed factory overhead costs and that 21% of the operating expenses are fixed. Since King Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. Prepare a differential analysis, dated March 3, 2014, to determine whether King Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero "0
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