Grandma MeeMaw is retired and lives in sunny, tropical Florida where she doesn't get to see her grandkids as much as she would like. To fill her time, MeeMaw has started a small business focusing on coconuts. Since MeeMaw isn't as young and spry as she used to be, she purchases whole coconuts in good condition from the neighborhood kids for an average of $5 per coconut. MeeMaw then produces canned coconut cream & milk, filtered coconut water, and souvenir coconut shells, although she views coconut Cream and Milk as her primary product. At the end of the recent season, MeeMaw evaluated her financial results: Cream & MUK Water Shells Total Sales revenues $33,000 $8,800 $2,200 $44,000 Share of coconut cost 19,800 5.280 1,320 26,400 Processing expenses 6,600 990 660 8.250 Allocated overhead 4.400 660 440 5,500 Income (loss) $ 2.200 $1,870 ($ 220) $ 3,850 The cost of coconuts is assigned to each product line using the relative sales value of cream & milk water, and shells (i.e. the percentage of total sales generated by each product). Processing expenses are directly traced to each product line Overhead costs represent MeeMaw's basic living expenses. These are allocated to each product line on the basis of processing expenses. a. Should Grandma MeeMaw drop shells from her product offerings? Support your answer with computations, Another souvenir artist in the neighboring community has offered to buy every shell "as is" for $0.60 per shell (note: "as is" refers to the situation where MeeMaw incurs no other processing costs where the shells are concerned). Assume that MeeMaw expects to process the same number of coconuts each season. Should she sell shells to the artist? Support your answer with computations