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Differential Analysis for a Discontinued Product A condensed income statement by product line for Crown Beverage Inc. indicated the following for Royal Cola for
Differential Analysis for a Discontinued Product A condensed income statement by product line for Crown Beverage Inc. indicated the following for Royal Cola for the past year Cost of goods sold Operating expenses Los from operation $232,600 111,000 $121,400 142,000 $2,400) It is estimated that 13% of the cost of goods sold represents faed factory overhead costs and that 20% of the operating expenses are feed. Since Royal Cola is only one of many products, the fixed casts will not be materialy affected if the product parental analysis, dated March 3, to determine whether to Continue Royal Cola (Alterative 1) or Discontinue Royal Cola (Alternative 2) an a Differential Analysis, Continue Royal Cola (Alt. 1) er Discontinue Royal Cola (Alt. 3) March 3 Continue Royal Discontinue Royal Cala (Alternative 1) Cela (Alternative 3) Differential Effects (Aernative 3) For those boses in which you must entered o Should King Cas be retained? Expan As indicated by the differential analysis in pen (A), the insane would
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