A soda company produces and sells three different types of sodas: A, B, and C. A high-level, simplified profit/loss statement for the company is provided here. Corporate overhead (rent, general and administrative expense, etc.) is allocated equally among the three product versions. After reviewing the statement, company managers are concerned about the loss on B and are considering ceasing production of that type of soda. Should they do so? Explain.

A soda company produces and sells three different types of sodas: A, B, and C. Ahighlevel, simplied prot/loss statement for the company is provided here. Corporate overhead (rent, general and administrative expense, etc.) is allocated equally among the three product versions. After reviewing the statement, company managers are concerned about the loss on B and are considering ceasing production of that type of soda. Should they do so? Explain. Information A B C Total Net Soda Sales $180,000 $130,000 $105,000 $415,000 Variable Costs 105,000 135,000 82,500 322,500 Corporate Overhead Cost 60,000 60,000 60,000 180,000