Differential Analysis for a Discontinued Product A condensed income statement by product line for Warrick Beverage Inc. indicated the following for Mango Cola for the past year: Sales $233,800 Cost of goods sold (112,000) Gross profit $121,800 Operating expenses (143,000) Operating loss $(21,200) It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs and that 18% 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 Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0", 1f 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 233.00 231,00 Costs: Variable cost of goods sold 0 0 Variable operating expenses It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs a Mango Cola is only one of many products, the fixed costs will not be materially affected if th a. Prepare a differential analysis dated February 29 to determine whether Mango Cola shol 2). If an amount is zero, enter "0". 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 233,800 0 -233,800 Costs: Variable cost of goods sold Variable operating expenses 0 0 Jill Il Fixed costs Profit (Loss) b. Should Mango Cola be retained