EX 25-3 a Part Continue Alternative 1 Discontinue Alternative 2 Differential Effect on Income Alternative 2 Revenues $390,000 $0 $-390,000 Costs: Variable $-325,700 $0 $325,700 Fixed $-113,300 $-113,300 $0 Total Costs $-439,000 $-113,300 $325,700 Income (Loss) $-49,000 $-113,300 $-64,300 b Part As the discontinue of Star Cola resulted in differential loss amounting $64,300, so the Star Cola should be retained to avoid that incremental loss.