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A condensed Income statement by product line for Crown Beverage Inc. indicated the following for Royal Cols for the past year $236.200 Cast of goods
A condensed Income statement by product line for Crown Beverage Inc. indicated the following for Royal Cols for the past year $236.200 Cast of goods sold 111,000 $125,200 Operating expenses 144,000 Los from operations (18.800) It is estimated that of the cost of goods sold represents fed factory overhead costs and that 20% of the operating expensere fed. Since Royal Cole materyalected if the product is discontinued only one of many products, the fixed costs will not be ed (Alterative 2). If an amount is er, entero" e a mission to indicate Prepare a differential analysdated March to determine whether Royal Cole should be continued (Alternative 1) or d o Differential Analysis Royal Cols (Alt 1) or Disco Con oyal Cola ( 2) Continue Royal D on Differential effect Cala (Annie) Coin (Alternative) Alamative) Fed costs Income b. Should Star Cois bereid in in the production As indicated by the differential analysis in pat (A), the income would
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