Chapter 24 Homework eBook Show Me How Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales Cost of goods sold Gross profit $235,700 111,000 Operating expenses Loss from operations $124,700 143,000 $(18,300) It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Because Fruit 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 January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Continue Fruit Cola (Alt. 1) or Discontinue Fruit Cola (Alt. 2) Revenues Costs: Variable cost of goods sold Variable operating expenses Fixed costs Income (Loss) Feedback Check My Work $ Continue Fruit Cola (Alternative 1) January 5 Discontinue Fruit Cola (Alternative 2) Differential Effect on Income (Alternative 2) C