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

Sales	$234,600
Cost of goods sold	111,000
Gross profit	$123,600
Operating expenses	143,000
Loss from operations	$(19,400)

It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 19% 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.

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 "0". Use a minus sign to indicate a loss.

b. Should Star Cola be retained? Explain.