01 Formatas ! Neutral % , 1"60+Formattinaal Formatting" Table Styles Number Situation 2 Cereal Company sells three types of cereals: Fruit, Wheat, Com Revenues and Expenses for each are as follows Fruit WheatCorn $1,000,000 $700,000 $250,000 Sales Variable Cost Of Goods Sold $500,000 $400,000 $200,000 Variable Operating Expenses $50,000 $30,000 $75,000 Fixed Cost Of Goods Sold$200,000 $180,000 $85,000 Fixed Operating Expenses$100,000 S95,000 $25,000 Questions 1) Create Income Statements for each of the three types of cereal. 2) Which types (f any) are under performing? 3) Which type(s) (f any) would you suggest should be discontinued? 4) What is the Differential analysis of discontinuning Wheat