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Differential Analysis for a Discontinued Product A condensed income statement by product line for tavonia Beverage Inc, indicated the following for Vim Cola for the

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Differential Analysis for a Discontinued Product A condensed income statement by product line for tavonia Beverage Inc, indicated the following for Vim Cola for the past year: It is estimated that 15% of the cost of qoods sold represents fixed factory overhead costs and that 20% of the operating expenses are fixed. Because Vim 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 November 2 to determine whether Vim Cola should be contirued (Alternative-1) or discontinued (Alternative 2). If an ammount is zero, enter "0", If required, use a mints sign to indicate a loss. It is estimated that 15% of the cost of gopds sold represente fixed factory overhead costs and that 20% of the operating expenses are fixed, Because Vir 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 November 2 to determine whether Vim Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter " 0. If required, use a minus sign to indicate a loss. b. Should vim Cola be retained

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