Chap lo Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year Sales Cost of goods sold 109,000 Gross profit Operating expenses 143,000 Loss from operations $(15,400) 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 Fruit Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued $236,600 $127,600 a. Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0. Use a minus sign to indicate a loss. Differential Analysis Continue Fruit Cola (Alt. 1) or Discontinue Fruit Cola (Alt. 2) Continue Fruit Cola Discontinue Fruit Cola (Alternative 2) Differential Effect on Income Alternative 2) Revenues Variable cost of goods Variable operating expenses Fixed costs Income (Loss) b. Should Fruit Cola be retained