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 $6.00 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 $14,704, 650 Costs Manufacturing costs Allocated corporate costs (e58) Product-1ine margin Allowance for tax (0208) $14,447,895 735, 233 15, 183, 128 (478,478) 95, 695 es S Product-line profit (loss) (382, 783) 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 product costs for Bubbs: Month Cases Production Costs $1,164, 340 222,000 224, 700 222, 400 243,000 250, 450 252,000 227,750 254,700 246, 300 260, 150 257,700 266,700 2 1,185, 840 1, 194, 493 1,210,035 1,212,339 1,233, 185 1,208, 211 1,251,286 1,249,738 1,261,837 1,266,272 1,296, 963 4 5 6 7 10 11 12