Sales $232,500 Cost of goods sold (108,000) Gross profit $124,500 Operating expenses Operating loss (145,000) $(20,500) It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 22% of the operating expenses are fixed. Because Mango 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 February 29 to determine whether Mango Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. - Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mango Cola February 29 Continue Mango Cola. Discontinue Mango Cola Differential (Alternative 1) (Alternative 2) Effects (Alternative 2) Revenues 232,500 0 -232,500 Costs: Variable cost of goods sold 124,500 X Variable operating expenses Fixed costs Profit (Loss) x