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Oferential Analyn for a Discontinued Product Andere income statement by product for a gated the wing for vin Ore for the past year Sales
Oferential Analyn for a Discontinued Product Andere income statement by product for a gated the wing for vin Ore for the past year Sales Cost of goods su Gross pront Operating expenses Operating fo $12,500,000 (30,000,000) $2,500,000 (3,500,000) $1,000,000) It is estimated that 25% of the cost of goods sold represents fixed factory overhead costs and that 10% of the operating expenses are faed Because Vini Cala is only one of many products, the fed costs wilt be materia affected if the product is ducentmued a. Prepare a differential analys dated November 2 to determine whether Vim Cole should be continued (Alternative 1) or discend (Amative 2). If an amount is zers, enter. If required, use a minus sign to indicate Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Vim Cola November 2 Continue Line Item Description Vim Cola Discontinue Vin Cola Differential Effects (Alternative 1) (Altemative 2) (Alternative 2) Revenues Cost: Variable cost of goods sold Variable operating expenses Fixed costs Profit (loss) b. Should Vim Cola be retained?
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