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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

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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 $234,300 112,000 $122,300 146,000 Gross profit Operating expenses Loss from operations $(23,700) It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 23% 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. . 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) Differential Effect on Income (Alternative 2) Revenues Costs: Variable cost of goods sold Vanable operating expenses bild Fixed costs Income (Loss) b. Should Fruit Cola be retained

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