A condensed income statement by product line for Lavonia Beverage Inc. indicated the following for Vim Cola for the past year:Line Item DescriptionAmountSales$$232,000$Cost of goods sold$(112,000)$Gross profit$$120,000$Operating expenses$(144,000)$Operating loss$$(24,000)$It is estimated that $13\%$ of the cost of goods sold represents fixed factory overhead costs and that $19\%$ of the operating expenses are fixed. Because Vim Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued.Question Content Areaa. $$Prepare a differential analysis dated November $2$ to determine whether Vim Cola should be continued $($Alternative $1)$ or discontinued $($Alternative $2).$ If an amount is zero, enter $"0".$ If required, use a minus sign to indicate a loss.Differential AnalysisContinue $($Alt$.1)$ or Discontinue $($Alt$.2)$ Vim ColaNovember $2$Line Item DescriptionContinueVim Cola$($Alternative $1)$DiscontinueVim Cola$($Alternative $2)$DifferentialEffects$($Alternative $2)$Revenues$Revenues$Revenues$RevenuesCosts:Variable cost of goods soldVariable cost of goods soldVariable cost of goods soldVariable cost of goods soldVariable operating expensesVariable operating expensesVariable operating expensesVariable operating expensesFixed costsFixed costsFixed costsFixed costsProfit $($loss$)$$Profit $($loss$)$$Profit $($loss$)$$Profit $($loss$)$Question Content Areab. $$Should Vim Cola be retained? YesNo