A condensed income statement by product line for Lavonia Beverage Inc. indicated the following for Vim...

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A condensed income statement by product line for Lavonia Beverage Inc. indicated the following for Vim Cola for the past year: Sales Cost of goods sold $234,900 (108,000) Gross profit Operating expenses Operating loss $126,900 (146,000) $(19,100) It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 21% 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 Continue Line Item Description Vim Cola Differential Vim Cola Effects (Alternative 1) (Alternative 2) (Alternative 2) Discontinue Revenues Costs: Variable cost of goods sold Variable operating expenses Fixed costs Profit (loss) $ A condensed income statement by product line for Lavonia Beverage Inc. indicated the following for Vim Cola for the past year: Sales Cost of goods sold $234,900 (108,000) Gross profit Operating expenses Operating loss $126,900 (146,000) $(19,100) It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 21% 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 Continue Line Item Description Vim Cola Differential Vim Cola Effects (Alternative 1) (Alternative 2) (Alternative 2) Discontinue Revenues Costs: Variable cost of goods sold Variable operating expenses Fixed costs Profit (loss) $