Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. 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 fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Sales Variable costs OriginalStrawberry Orange $32,600 $42,200 $51,500 37,980 9,780 4,220 $10,300 5,800 22,820 41,200 Contribution margin 4,100 S 5,680 Fixed costs allocated to each product line 7 Operating profit (loss) (1,580) 2,800 Required a. Prepare a differential cost schedule Alternative: Drop Strawberry Difference (all lower under the alternative) Status Quo Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profit (loss)