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Cotrone Beverages makes energy drinks in three flavors: Original, Srawberry, and Orange. Company is currently operating at 75 percent of capachy Worried about the company's

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Cotrone Beverages makes energy drinks in three flavors: Original, Srawberry, and Orange. Company is currently operating at 75 percent of capachy Worried about the company's performance, the company president is considering dropping the Strawberry flavor. it Strawberry is dropped, the revenue associated with it would be lost and the related varlable costs saved. In addtion, the company's total fixed costs would be reduced by 15 percent Segmented income statements appear as follows: 33,000 $43 400 51 300 Vanable costs 41 040 Contrbution margn 9,900 $ 4 340 $10260 45006300 5,400 (1,)2,960 Food costs alocated to each product ine Operating profit Closs) Required: a. Prepare a differential cost schedule. Status Quo Drop lower under ythe Revenue ess Variable costs Contrbution margin ess Fixed costs Operating proft (loss)

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