chegg.com/homework-help/questions and answers/luke-corporation-produces-variety products within E Chegg Study Textbook Solutions Expert Q&A Study Pack Practice 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 sell in vending machines. The product, which sells for $6.20 per case, has not had the market success that managers expected and the company is considering dropping Bubbs. The product line Income statement for the past 12 months follows: VG Conte Manufacturing conta Allocated corporate costa) Product-line margis Allows for tax 2011 Product-line proti rosa) 114,710,650 314,449,99 32,22 15.165.428 $1474,778) $379,823) 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 Date on corporate costs and revenues for the past two years follow (Corporate Corpor, Corts most recent year 125,750,000 36.227.500 Prvi er 12.100,000 >,301,145 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 helo with some analysis. In addition to the information given, Mr. Andre provides you with the following data on product costs for Bubble 1 2 3 1 . 7 Cartiet 126,00 11.170.140 225.00 1,191,140 224,400 1.200,493 107.000 1.21400) 234.650 1.210.31 255,000 1,239.101 22.190 1.214,211 254.100 1,253,256 108,300 1,255,730 2.30 1.247.927 239.10 3.273.27 3.100 3.03.10 11 Required: Gunk Stores has requested a quote for a special order of Bubbs. This order would not be subject to any corporate location and would not affect corporate Col What is the minimum price Mc Andre can offer Dunk without reducing po yurther? b. How many cases of Bubbs does Luke have to sell in order to break even on the product? Suppose has a requirement that all products have to eam 5 percent of sales after tax and corporate allocations or they will be dropped. How many cases of Bubb does Mc Andre need to sell to sveld sewing Bubos dropped d. Asuman costs and prices will be the same in the next year Luke drops Bubb, how much will Luke's profit increase o decrease? Assume the production costs can be avoided if us is dropped Show transcribed image text On 099 chegg.com/homework-help/questions and answers/luke-corporation-produces-variety products within E Chegg Study Textbook Solutions Expert Q&A Study Pack Practice 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 sell in vending machines. The product, which sells for $6.20 per case, has not had the market success that managers expected and the company is considering dropping Bubbs. The product line Income statement for the past 12 months follows: VG Conte Manufacturing conta Allocated corporate costa) Product-line margis Allows for tax 2011 Product-line proti rosa) 114,710,650 314,449,99 32,22 15.165.428 $1474,778) $379,823) 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 Date on corporate costs and revenues for the past two years follow (Corporate Corpor, Corts most recent year 125,750,000 36.227.500 Prvi er 12.100,000 >,301,145 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 helo with some analysis. In addition to the information given, Mr. Andre provides you with the following data on product costs for Bubble 1 2 3 1 . 7 Cartiet 126,00 11.170.140 225.00 1,191,140 224,400 1.200,493 107.000 1.21400) 234.650 1.210.31 255,000 1,239.101 22.190 1.214,211 254.100 1,253,256 108,300 1,255,730 2.30 1.247.927 239.10 3.273.27 3.100 3.03.10 11 Required: Gunk Stores has requested a quote for a special order of Bubbs. This order would not be subject to any corporate location and would not affect corporate Col What is the minimum price Mc Andre can offer Dunk without reducing po yurther? b. How many cases of Bubbs does Luke have to sell in order to break even on the product? Suppose has a requirement that all products have to eam 5 percent of sales after tax and corporate allocations or they will be dropped. How many cases of Bubb does Mc Andre need to sell to sveld sewing Bubos dropped d. Asuman costs and prices will be the same in the next year Luke drops Bubb, how much will Luke's profit increase o decrease? Assume the production costs can be avoided if us is dropped Show transcribed image text On 099