Luke Corporation produces a variety of products, each within its own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $$5\mathrm{.}85$ per case, has not had the market success that managers expected, and the company is considering dropping Bubbs.

The product$-$line income statement for the past $12$ months follows:

$\backslash$table$[[$Revenue$,,$$$14,700,150$

Required:

A$.$ Bunk stores has requested a quote for a special order of Bubbs. This order would not be subject to any corporation allpcation $($ and would not affect corporate costs$).$ What is the minimum price Mr$.$ Andre can offer Bunk without reducing profit any further?

B$.$ How many cases of Bubbs does Like have to sell in order to break even on this product?

C$.$ Suppose Luke has a requirement that all products have to earn $5$ percent of sale $($after tax and corporate allocations$)$ or they will be dropped. How many cases of Bubbs does Mr$.$ Andre need to sell to avoid seeing Bubbs dropped?

D$.$ Assume all costs and prices will be the same next year. If luke drops Bubbs, how much will Lukes profits increase or decrease? Assume that fixed production costs can be avoided if bubbs is dropped.