Chapter 24 Homework CengageNOWv2 | Online teaching and Chapter 24 Homework 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 $233,800 110,000 Gross profit $123,800 Operating expenses Loss from operations 144,000 $(20,200) It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 20% 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. 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) January 5 Continue Fruit Cola (Alternative 1) Discontinue Fruit Cola (Alternative 2) Differential Effect on Income (Alternative 2) 233,800 0 -233,800 Revenues. Costs: Variable cost of x goods sold Variable operating x x expenses Fixed costs x Income (Loss) x X x