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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
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 $8.48 per case, has not had the market success that managers expected, and the company is considering dropping Bubs. The product-line income statement for the past 12 months follows:
Revenue | $ 18,275,000 | |
Manufacturing costs | $ 16,125,000 | |
Allocated corporate costs | $ 1,827,500 | $ 17,952,500 |
Product-line margin | $ 322,500 | |
Allowance for tax (@20%) | $ 64,500 | |
Product-line profit (loss) | $ 258,000 |
How many cases of Bubbs did Lukes sell (based on sales revenue)?
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