Differential Analysis for a Discontinued Product A condensed income statement by product line for Warrick Beverage Inc. indicated the following for Mange Cola for the past year: Sales $236,500 (111,000) Cost of goods sold Gross profit $125,500 Operating expenses 1142,000) Operating loss 5(16,400) It is estimated that 15% 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 Cale should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "o". If required, use a minus sign to indicate a loss Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mango Cola February 29 Continue Discontinue Differential Mango Cola Mango Cola Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Casts: Variable cost of goods sold Variable operating expenses Fixed costs 11. and Profit (Loss) b. Should Mango Cola be retained