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eBook Show Me How A condensed Income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year:

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eBook Show Me How A condensed Income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $388,400 Cost of goods sold 789,200 Gross profit $199,200 Operating expenses 250,100 Loss from operations $ (50,900) It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 27% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued Required: a. Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "O". A colon () will automatically appear if required b. Should Fruit Cola be retained? Explain 5:18 Labels Cash flows from investing activities Costs Amount Descriptions Fixed costs Gain on sale of investments Income (loss) Loss on sale of investments Revenues Variable cost of goods sold Variable operating expenses eBook Show Me How a. Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Aternativet) or discontinued tomate 23 Refer to the lots of Label and Amount Descriptions for the exact wording of the answer choices for text entries. For those Dores in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter To". A coton (wel automatically appear required Differential Analysis Continue (Alternative 1) or Discontinue (Aternative 2) Frutcom January 5 Continue Fruit Discontinue Fruit Differential Effect Cole Cola on Income (Alternative 1) Plternative 2) (Alternative 2) $388,400.00 3 Revenues 50.00 Costs 5 000 Variable cost of goods sold Variable operating expenses 000 7 Fixed costs 000 Income foss) Final Question . Should Fruit Cole be retained? Explain No Yes As indicated by the differential analysis in part (a), the income would decrease by $ it the product is discontinued

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