Instructions A condensed income statement by product line for Celestial Beverage Inc. indicated the following for Star Cola for the past year: Sales Cost of goods sold $388.400 186,600 $201,800 Gross profit Operating expenses 250,100 Loss from operations $ (48,300) It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 28% of the operating expenses are fixed. Because Star Coia is only one of many products, the fixed costs will not be materialy affected at the product is discontinued Required: A. Prepare a differential analysis dated January 21 to determine whether Star Cola should be continued (Alternative 1) or discontinued (Alternative 2). Refer to the list 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 to". A colon () will automatically appear is required. B. Should Star Cola be retained? Explain Ucions Labels and Amount Descriptions Ad Labels Cash flows from investing activities Costs Amount Descriptions Fixed costs Gain on sale of investments Income (loss) Loss on sale of investments Revenues It is Variable cost of goods sold pro Variable operating expenses A. Prepare a differential analysis dated January 21 to determine whether Star Cola should be continued (Alemative 1) or discontinued (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact warding 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. Differential Analysis Continue Star Cola (Alternative 1) or Discontinue Star Cola (Alternative 2) January 21 Continue Star Discontinue Star Differential Cola Cola Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) 1 4 Label 5 6 7 A. An B. Should Star Cola be retained? Explain. no No Yes As indicated by the differential analysis in part (A), the income would by if the product is discontinued