I eBook Show Me How Calclator Dffereetial Analysis for a Discontinued Product condensed income statement by product line for Celestial Beveraope Inc Indicated the follwing for Star Cola for the past year Sales Coot of goods sold Gross profit Operating expenses255,000 Loss from cperations $(49,000) $390,000 184,000 206,000 It s estimated that 20% of the cost o ds s d epresents fixed actory ove head costs and that 30% f the operating expenses are fined. Because star coa sa iv one o many pr acts, thefind cots il ot be ate aby affect d if the pro ct s discontinued a. Prepare a differential analysis dated January 21 to determine whether Star Cola shoold be continued (Alternative 1) or discontinued(Altenative 21. If an amount is zero, enter zero "0 Use a minus sign to indicate a loss. Differential Analysis Continue Star Cola (Alt. 1) or Discontinse Star Cola (Alt 2) 21 Differential Effect Continue Star Discontinue Star cola (Altemiative 1) Cola (Altermative 2) o lncome (Alternative 2) Revenues Costs arable costo, goods sold ] Variable eperating expenses Fored costs Income fLoss) b. Should Star Cola be retained? Explain. the product is dscontinued. As indicated by the differential analysis in part (A), the income would