A condensed income statement by product line for Scandi Beverage Inc. indicated the following for Dietup for the past year: It is estimated that 10% of the cost of goods sold represents fixed factory overhead costs and that 20% of the operating expenses are fixed. Since Dietup is only one of many products, the fixed costs will not be materially affected if the product is discontinued. Scandi should discontinue making Dietup because differential loss is exist(10, 700) continue making Dietup because differential income is S4.700 continue making Dietup because differential income is exist7, 700 discontinue making Dietup because differential loss is exist(3,000)