Differential Analysis for a Discontinued Product A condensed income statement by product line for British Beverage Inc. indicated the following for King Cola for the past year: Sales Cost of goods sold Gross profit Operating expenses Loss fro operations $(14,600) It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 18% of the operating expenses are fixed, since King Cole is only one of many products, the fixed costs will not be materially affected if the product is discontinued 5237,400 108,000 5129,400 144,000 repare a differential analysis, dated March 3, to determine whether King Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero "O". Use a minus sign to indica loss. Differential Analysis Continue King Cola (Alt. 1) or Discontinue King Cola (Alt. 2) uary 21 Differential Effect on Income Continue King Cola (Alternative 1) Cola (Alternative 2(Alternative 2) Discontinue King Variable cost of goods sold Variable operating expenses Fixed costs Income (Loss) b. Should Star Cola be retained? Explain. As indicated by the differential analysis in part (A), the income would if the product is discontinued