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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

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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: It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 25 wh of the operating expensen 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 difierential analysis dated february 29 to determine whether Mango Cola ahould be continued (Aiternative 1 ) or discontinued (Alternative 2). If an amount is zero, enter "O". If required, use a minus sign to indicate a loss. It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 25% 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 (Aiternative 1 ) or discontinued (Aiternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. b. Should Mango Cola be retained

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