Sales Cost of goods sold Gross profit Operating expenses Loss from operations $233,400 108,000 $125,400 145,000 $(19,600) It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Since Royal 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 March 3, to determine whether to Continue Royal Cola (Alternative 1) or Discontinue Royal Cola (Alternative 2). If an amount is zero, enter zero "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue Royal Cola (Alt. 1) or Discontinue Royal Cola (Alt. 2) Revenues Costs: Variable cost of goods sold Variable operating expenses Fixed costs Profit (loss) March 3 Continue Royal Discontinue Royal Cola (Alternative 1) Cola (Alternative 2) b. Should King Cola be retained? Explain. Differential Effects (Alternative 2) As indicated by the differential analysis in part (A), the income would i by $ if the product is discontinued.