Ex 25-3 differential analysis for a discontinued product obj. 1 a condensed income statement by product line for celestial beverage inc. indicated the following for star cola for the past year: sales $390,000 cost of goods sold 184,000 gross profit $206,000 operating expenses 255,000 loss from operations $ (49,000) it is estimated that 20% of the cost of goods sold represents fixed factory overhead costs and that 30% of the operating expenses are fixed. because star cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued
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