Luke Corporation produces a variety of products, each within their 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 $5.50 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 last month follows: Revenue S 1,415,975 Costs $ Production costs (1,255,451) Product-line margin $ 160,524 Allowance for tax (32,104.80) (@20%) Product-line profit $ 128,419.20 (loss) I Roy O. Andre, the product manager for Bubbs, is concerned about whether the product will be dropped by the company and has employed you as a financial consultant to help with some analysis. In addition to the information given, Mr. Andre provides you with the following data on production costs for Bubbs for the past 12 months: Month Cases 1 220,500 Production Costs $1,155,250 2 219,200 1,174,265 3 216,900 1,172,918 4 233,000 1,191,523 5 238,100 1,195,827 6 241,400 1,216,673 7 222,200 1,195,699 8 249,200 1,215,210 9 243,200 1,233,226 10 254,600 1,250,377 11 249,500 1,249,760 1,255,451 12 257,450 Assume that the relevant range of production is between 150,000 and 275,000 cases.