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 $237,000 Cost of goods sold 109,000 Gross profit $128,000 Operating expenses 142,000 Loss from operations $(14,000) It is estimated that 14% 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 "O". 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) Different Herton Income (Alternative Revenues Costs Variable cost of goods sold Variable operating expenses Fixed costs Income (Loss) Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying the cost plus approach to product pricing. The costs of producing and selling 8,000 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $ 90 per unit Direct labor Factory overhead Selling and administrative expenses $361,100 126,900 27 Factory overhead Selling and administrative expenses Total variable cost per unit $180 per unit Smart Stream desires a profit equal to a 14% return on invested assets of $1,046,630. a. Determine the total cost and the total cost amount per unit for the production and sale of 8,000 units of cellular phones. Round the cost per unit to two decimal places Total cost Total cost amount per unit b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones, c. Determine the selling price of cellular phones. Round to the nearest cent. per cellular phone