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Differential Analysis for a Discontinued Product A condensed income statement by product line for Lavonia Beverage Inc, indicated the following for Vim Cola for the
Differential Analysis for a Discontinued Product A condensed income statement by product line for Lavonia Beverage Inc, indicated the following for Vim Cola for the past yeac: It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed, Because Vim Cola is only one of many products, the foxed 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 lossi
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