a. Prepare a differential analysis report for the proposed discontinuance of Royal Cola British Beverage Inc. Proposal to Discontinue Royal Cola Differential Analysis Report Differential revenue from annual sales of Royal Cola: Differential cost of annual sales of Royal Cola: b. Which of the following statements about Royal Cola is true? Differential Analysis Report for a Discontinued Product A condensed income statement by product line for British Beverage Inc. indicated the following for Royal Cola for the past year: Sales $236,900 (111,000) Cost of goods sold Gross profit $125,900 (144,000) Operating expenses $(18,100) Operating loss It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed costs will not be significantly affected if the product is discontinued