A condensed income statement by product line for Crown Beverage Inc. indicated the following for King Cola for the past year:

Sales	$237,600
Cost of goods sold	108,000
Gross profit	$129,600
Operating expenses	143,000
Loss from operations	$(13,400)

It is estimated that 13% of the cost of goods sold represents fixed factory overhead costs and that 20% 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.

ow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator assignment-take&inprogress -false eBook Loss from operations $(13,400) It is estimated that 13% of the cost of goods sold represents fixed factory overhead costs and that 20 of the operating expenses are fired Since kang 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 discontinued (Alternative 2). If an amount is zero, enter zero "o Use a minus sign to indicate a loss Show Me How Calculato Differential Analysis Continue King Cola (Alt. 1) or Discontinue King Cola (Alt. 2) 21 Differential Effect e King Discontinue king on Income cola CAlternative 1) Colletve (Alternative2) Revenues Variable cost of goods sold Variable operating expenses Fixed costs Income (Loss) b. Should Star Cola be retained? Explain. As indicated by the differential analysis in part (A), the income would f the product is discontinued pievio Next Check My Work 2 more Check My Wonk uses remaining 11:04 PM