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Differential Analysis for a Discontinued Product A condensed income statement by product line for Lavonia Beverage Inc. indicated the following for Vim Cola for thi It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operati 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 " 0 ". If required, use a minus sign to indicate a loss. duct line for Lavonia Beverage Inc. indicated the following for Vim Cola for the past year: 10 0) 0 0) 0) f goods sold represents fixed fachry overhead costs and that 23% of the operating expenses are fixed. Because Vim Cola is only one of many aterially affected if the product is discontinued. ed November 2 to determine whether Vim Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter indicate a loss. tial Analysis scontinue (Alt. 2) Vim Cola ember? uses remaining. It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses a 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 discontin " 0 ". If required, use a minus sign to indicate a loss. b. Should Vim Cola be retained

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