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Crocade is a sports drink manufacturer. The firm reported the following information for each flavor line of drink for last accounting period: Lemon-Lime Orange Fruit

Crocade is a sports drink manufacturer. The firm reported the following information for each flavor line of drink for last accounting period:

Lemon-Lime

Orange

Fruit Punch

Grape

Sales

$5,400,000

$1,950,000

$4,845,000

$2,106,000

Variable costs

$1,920,300

$560,100

$1,345,000

$975,800

Fixed costs

$2,170,800

$1,028,400

$1,855,200

$1,390,500

Net Operating Income (Loss)

$1,308,900

$361,500

$1,644,800

($260,300)

Assume that if the Grape line is dropped, all variable costs can be avoided and 10% of the fixed costs can be avoided. The financial advantage (disadvantage) for the company as a result of eliminating the Grape line is:

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