EX 24-3 Differential analysis for a discounted product.

A condensed income statement by product line for Celestial Beverage Inc. Indicated the following for Star Cola for the past year:

It is estimated that 15% of the cost of goods sold represents fixed factory overhead cost and that 25% of the operating expenses are fixed. Since Star Cola is only one of many products, the final cost wont be materially affected if the product is discontinued.

a. prepare a differential analysis, dated January 21,2014, to determine whether Star Cola should be continued( alternate 1) or discontinued (alternate 2).