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: Sales $232,400 Cost of goods sold (108,000) Gross profit $124,400 Operating expenses (145,000) Operating loss $(20,600) It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 22% 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 Alternative 1% or discontinued (Alternativu 2). I an amount is zero, enter "0". If required, use a minus sign to indicate a los 2. Prepare a differential analysis dated February 29 to determine whether Mango Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "O". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mango Cola February 29 Continue Mango Cola Mango Cola Effects (Alternative 1) (Alternative 2) (Alternative 2) Discontinue Differential Revenues Costs Variable cost of goods sold Variable operating expenses Fixed costs Profit (Loss b. Should Mango Cola be retained