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: $237,600 Sales Cost of goods sold Gross profit Operating expenses 112,000 $125,600 145,000 Loss from operations $19,400) It is estimated that 13% of the cost of goods sold represents fixed factory overhead costs and that 20% 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. a. 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 "0". Use a minus sign to indicate a loss. Differential Analysis Continue Fruit Cola (Alt. 1) or Discontinue Fruit Cola Revenues Costs Variable cost of goods sold Variable (Alt. 2) January 5 Continue Fruit Cola (Alterative 1) Discontinue Cela (Alternative 2) operating expenses Fixed costs Income (Loss) b. Should Fruit Cola be retained? Differential Effect on Income (Alternative 2) 0000