A condensed income statement by product line for Healthy Beverage Inc indicated the following for Fruit Cola for the past year Sales $391,300 Cost of goods sold 188,900 Gross profit $202,400 Operating expenses 254,500 Loss from operations $ (52,100) It is estimated that 19 of the cost of goods sold represents fixed factory overhead costs and that 35 of the operating expenses are fixed Because Fruit Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued Required a Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2) Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries For those boxes in which you must enter subtracted or negative numbers use a minus sign If there is no amount or an amount is zero, enter 0 A colon ( ) will automatically appear if required b Should Fruit Cola be retained Explain Labels Cash flows from investing activities Costs Amount Descriptions Fixed costs Gain on sale of investments Income (loss) Loss on sale of investments Revenues Variable cost of goods sold Variable operating expenses a Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2) Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries For those boxes in which you must enter subtracted or negative numbers use a minus sign If there is no amount or an amount is zero, enter o A colon ( ) will automatically appear if required Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Fruit Cola January 5 Continue Fruit Discontinue Fruit Differential Cola Efect on Income Cola (Alternative 1 (Alternative 2) (Alternative 2) 4Label) b Should Fruit Cola be retained Explain No Yes if the product is discontinued As indicated by the differential analysis in part (a), the income would

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A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $391,300 Cost of

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


Sales	$391,300
Cost of goods sold	188,900
Gross profit	$202,400
Operating expenses	254,500
Loss from operations	$ (52,100)

It is estimated that 19% of the cost of goods sold represents fixed factory overhead costs and that 35% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued.

	Required:
a.	Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
b.	Should Fruit Cola be retained? Explain.

Labels:
Cash flows from investing activities
Costs
Amount Descriptions:
Fixed costs
Gain on sale of investments
Income (loss)
Loss on sale of investments
Revenues
Variable cost of goods sold
Variable operating expenses

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a. Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.If there is no amount or an amount is zero, enter "o". A colon (:) will automatically appear if required Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Fruit Cola January 5 Continue Fruit Discontinue Fruit Differential Cola Efect on Income Cola (Alternative 1 (Alternative 2) (Alternative 2) 4Label) b. Should Fruit Cola be retained? Explain. No Yes if the product is discontinued As indicated by the differential analysis in part (a), the income would