Exercise 4-49 (Algo) Dropping Product Lines (LO 4-4) Cotrone Beverages makes energy drinks in three avors: 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 avor. If Strawberry is dropped. the revenue associated with it would be lost and the related variable costs saved. In addition. the company's total xed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Original Strawberry Orange Sales $33,199 $42,599 $59,999 Variable costs 23,179 38,348 46,728 Contribution margin $ 9,938 $ 4,268 $16,188 Fixed costs allocated to each product line 5,196 6,388 6,888 Operating profit (1055) $ 4,839 $(2,B4&) $ 3,388 Required: 1:. Prepare a differential cost schedule. [Select option "increase" or \"decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating prot (loss)