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8 30 Spoed Cotrone Beverages makes energy drinks in three flavors: Original. Strawberry and Orange. The company is currently operating at 75 percent of capacity.

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8 30 Spoed Cotrone Beverages makes energy drinks in three flavors: Original. Strawberry and Orange. The company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor if Strawberry is dropped the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total foed costs would be reduced by 15 percent Segmented income statements appear as follows: Product Sales Original Strberry orange 532.400 $4,400 551,100 Variable costs 40, Contribution margin 510,210 Exed costs allocated to each product line Operating profit (1) $4,820 3[3.560) $ 3,220 Required Prepare a differential cost schedule. (Select option "increaseor "decrease", keeping Status Quo as the bote. Select "none" if there is no effect) Status Quo Alternative Drop Strawberry Derence Revenue Less: Variable costs Required: 8. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect) pores Status Quo Alternative Drop Stwwberry Derence Revenue Less: Variable costs Contribution margin Less Fedcov Operating profits)

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