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QUESTION 5 Luke Corporation produces a variety of products, each within their own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sel in vending machines. The product, which sells for $5.25 per case, has not had the market success that managers expected, and the company is considering dropping Bubs. The product-line income statement for the past 12 months follows: Table 1 Revenue $14,682,150 $14.440,395 734,108 15,174,503 Costs Manufacturing costs Allocated corporate costs Product-line margin Allowance for tax (@20%) Product-line profit (loss) $ (492,353) 98,470 $ (393,883) All products at Luke receive an allocation of corporate overhead costs, which is computed as 5 percent of product revenue. The 5 percent rate is computed based on the most recent year's corporate cost as a percentage of revenue Data on corporate costs and revenues for the past two years follow Table 2 the past two years follow: Table 2 Corporate Revenue Corporate Overhead Costs Most recent year $106.750,000 $5,337,500 Previous year $76,200,000 $4,221,000 Assume the fixed corporate overhead is $1,454,000 in each year. None of these fixed costs are specifically traceable to Bubbs Roy O. Andre, the product manager for Bubbs, is concerned about whether the product will be dropped by the company and has employed you as a financial consultant to help with some analysis. In addition to the information given above, Mr. Andre provides you with the following data on product costs for Bus: Table 3 Monthly Production and Production Costs Table 3 Monthly Production and Production Costs Month Cases Prod. Costs 1 207,000 1,139,828 2 217,200 1,161,328 3 214,800 1,169,981 4 228,000 1,185,523 5 224,400 1,187,827 6 237,000 1,208,673 7 220,200 1,183,699 8 247,200 1,226,774 9 238,800 1,225 226 10 252,600 1,287,325 11 250,200 1,241,760 12 259,200 1,272,451 Table 4. Regression Analysis of Table 3 Data Adjusted R-squared 0.957 Variable Coefficient t pit Significance Std En . HE Click Save and Submit to save and submit. Click Save All Answers to save all answers Table 4. Regression Analysis of Table 3 Data Adjusted R-squared 0.957 Variable Coefficient t p> Significance Std Err Units 2.236 15.71 <.001 constant question: using the regression results presented in table what is fixed production cost per month of bubbs round your answer to nearest dollars>