EX 25-3 Differential analysis for a discontinued product om. I A condensed income statement by product line for Celestial Beverage Inc. indicated the following for Star Cola for the past year: Sales $390,000 Cost of goods sold 184.000 Gross prot $206,000 Operating expenses 255.000 Loss from operations 5 (49,000] It is estimated that 20% of the cost of goods sold represents xed factory overhead costs and that 30% of the operating expenses are fixed. Because Star 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 January 21 to determine whether to Continue Star Cola (Alternative 1) or Discontinue Star Cola (Alternative 2). b. - Should Star Cola be retained? Explain