Differential Analysis for a Discontinued Product A condensed income statement by product line for Warrick Beverage Inc. indicated the following for Mango Cols for the past year: Sales $236,000 Cost of goods sold (109,000) Gross pront $127,000 Operating expenses (143,000) Operating loss $(16,000) It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs ana that 21% of the operating expenses are fixed. Because Manga 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 Mange Cole should be continued (Alternative 1) or discontinued (Alternative 2). an amount is zero, enter "o. If required, use a minus sign to indicate alone 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 236.000 Costs 202.960 x Variable cost of goods sold