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 $5.30 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: Revenue Costs Manufacturing costs $ 14,683,650 $ 14,440,895 Allocated corporate costs (@5%) 734,183 15,175,078 $ Product-line margin Allowance for tax (@20%) Product-line profit (loss) $ (491,428) 98,285 (393,143) All products at Luke receive an allocation of corporate overhead costs, which is computed as 5 percent of product revenue. The 5 percent rate is computed based on the most recent year's corporate cost as a percentage of revenue. Data on corporate costs and revenues for the past two years follow: Most recent year Previous year Corporate Revenue Corporate Overhead Costs $ 107,750,000 76,300,000 $ 5,387,500 4,683,020