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Differential Analyss for a Discontinued Product A condensed income statement by product line for Lavonia...

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Differential Analyss for a Discontinued Product A condensed income statement by product line for Lavonia Beverage Inc, indicated the following for Vim Cala for the past year: It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 22% 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. b. Should Vim Cola be retained

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