A condensed income statement by product line for Crown Beverage Inc. indicated the following for King Cola for the past year: Sales Cost of goods sold Gross profit Operating expenses Operating loss $238,000 (111,000) $127,000 (146,000) $(19,000) It is estimated that 1 3% of the cost of goods sold represents fixed factory overhead costs and that 22% of the operating ex ense many products, the fixed costs will not be significantly affected if the product is discontinued Si ce Coia Sony one of e a. Prepare a differential analysis report for the proposed discontinuance of King Cola Crown Beverage Inc. Proposal to Discontinue King Cola Differential Analysis Report Differential revenue from annual sales of King Cola: Revenue from sales Variable cost of goods sold Variable operating expenses 238,000 Differential cost of annual sales of King Cola: Annual differential income from sales of King Cola