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Sales $237,600 Cost of goods sold (112,000) Gross profit $125,600 Operating expenses (146,000) Operating loss $(20,400) It is estimated that 14% of the cost of

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Sales $237,600 Cost of goods sold (112,000) Gross profit $125,600 Operating expenses (146,000) Operating loss $(20,400) It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs and that 23% 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 "o". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mango Cola February 29 Continue Discontinue Differential Mango Cola Mango Cola Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable operating expenses Fored Coats Profit (105)

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