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! total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Sales Variable costs Contribution margin Fixed costs allocated to each product line Operating profit (loss) Original $32,900 23,030 $ 9.870 5,400 $ 4,470 Strawberry $43,400 39,060 $ 4,340 5,700 $(1,360) Orange $51,300 41,040 $10,260 7,700 $ 2,560 Required: a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Answer is complete but not entirely correct. Alternative: Status Quo Drop Difference Strawberry Revenue $ $ decrease decrease 126,400 (102,090) 24,310 (19,100) 5,210 $ 83,800 (63,750) 20,050 (16,235) 3,815 Less: Variable costs Contribution margin Less: Fixed costs Operating profit (loss) $ (42,600) 38,340 X (4,260) 2,865 (1,395) decrease decrease $ $ $ decrease