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Product J is one of the many products manufactured and sold by Oceanside Company. An income statement by product line for the past year indicated a net profit for Product J of $2,750. This net profit resulted from sales of $275,000, cost of goods sold of $186,500, and operating expenses of $85,750. It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 40% of the operating expense is fixed. If Product J is retained, the revenue, costs, and expenses are not expected to change significantly from those of the current year. Because of the large number of products manufactured, the total fixed costs and expenses are not expected to decline significantly if Product J is discontinued. Prepare a differential analysis report dated February 8 of the current year. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Product J February 8 Continue Discontinue Differential Product J Product J Effects (Alternative 1) (Alternative 2) (Alternative 2) Costs: Profit (loss) Should the company continue or discontinue producing Product J? The company should producing Product J. Product (Alternativ $ Fixed operating expenses Revenues Supplies expenses Variable cost of goods sold Variable operating expenses Advertising expenses Commission expense on sale Fixed operating expenses Revenue from sales Variable cost of goods sold ta Costs: Advertising expenses Commission expense on sale Fixed cost of goods sold Revenue from sales Variable operating expenses Should the company continue or disco 000 Advertising expenses Commission expense on sale Fixed operating expenses Revenue from sales Variable operating expenses TI

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