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A condensed income statement by product line for Crown Beverage Inc, indicated the following for Royal Cola for the past year: It is estimated that

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A condensed income statement by product line for Crown Beverage Inc, indicated the following for Royal Cola for the past year: It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 20% of the operating expenses are foxed. 5 ince Royal Colo is only one of many products, the fixed costs wal not be materially affected if the product is discontinued. a. Prepare a differential analysis, dated March 3, to determine whether Royal Cola should be continued (Alternative 1) or discontinued (Aiternative 2). If an amount is zero, enter zero 0, Use a minus sign to indicate a loss. Differential Analysis Continue Royal Cola (AIt. 1) or Discontinue Royal Cola (Alt. 2) It is estimated that 16% of the cost of goods sold represents foxed factory overhead costs and that 20% of the operating expenses are fixed. Since Royal 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 Royal Cola should be continued (Aiternative 1) or discontinued (Aternative 2), If an amount is zero, enter zero " 0 ", Use a minus sign to indicate a loss. b. Should Star Cola be retained? Explain. As indicated by the differential analysis in part (A), the income would by 5 If the product is discontinued

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