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It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs and that 20% of the operating expenses are fixed.

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It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs and that 20% 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. a. Prepare a differential analysis dated lanuary 5 to determine whether Fruit Cola should be continued (Aternative 1) or discontinued (Alternative 2), If an amount is zero, enter "0". Use a minus sign to indicate a loss. b. Should Fruit Cola be retained

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