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

It is estimated that $12\%$ of the cost of goods sold represents fixed factory overhead costs and that $22\%$ of the operating expenses are fixed. Because Mango 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 February $29$ to determine whether Mango 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 Analysis

Continue $($Alt$.1)$ or Discontinue $($Alt$.2)$ Mango Cola

February $29$

Costs:

Variable cost of goods sold

Variable operating expenses

Fixed costs

Profit $($Loss$)$

$

$