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A condensed income statement by product line for Lavonia Beverage Inc. indicated the following for Vim cola for the past year: sales 235,100, cogs (112000),
A condensed income statement by product line for Lavonia Beverage Inc. indicated the following for Vim cola for the past year: sales 235,100, cogs (112000), gross profit 123,100, operating expenses; (143,000), operating loss (19900). It is estimated that 16% of the cost of goods sold represents fixed factory costs and that 18% of the operating expenses are fixed. Need to prepare a differential analysis dated November 2 to determine whether vim cola should be continued or discontinued
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