Sales $235,900 Cost of goods sold (111,000) Gross profit Operating expenses $124,900 Operating loss (145,000) $(20,100) It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs and that 19% of the operating expenses are fixed. Because Vim 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 November 2 to determine whether Vim 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) Vim Cola November 2 Discontinue Vim Cola Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Continue Line Item Description Vim Cola Revenues Costs: Variable cost of goods sold Variable operating expenses Fixed costs Profit (loss) 235,900 95,460 V LUD