Diiferential Analysis Report 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: It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 19% of the operating expenses are Since King Cola is only one of many products, the fixed costs will not be significantly affected if the product is discontinued. a. Prepare a differential analysis report for the proposed discontinuance of King Cola. It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 19%6 of the operating expenses are fixed. Since King Cola is only one of many products, the fixed costs will not be significantly affected if the product is discontinued. a. Prepare a differential analysis report for the proposed discontinuance of King Cola