O'Neil Enterprises produces a line of canned soups for sale at supermarkets across the country. Demand has been "soft" recently and the company is operating at 80 percent of capacity. The company is considering dropping one of the soups, beef barley, in hopes of improving profitability. If beef barley is dropped, the revenue associated with it will be lost and the related variable costs saved. The CFO estimates that the fixed costs will also be reduced by 25 percent. The following product line statements are available. Product Sales Variable costs Contribution margin Fixed costs allocated to each product line Operating profit (loss) Broth Beef Barley $44,900 40,000 Minestrone $53,300 41,500 $34,800 22,700 $12,100 6,100 $ 4,900 7,400 $ 6,000 $ 2,500 $11,800 8,500 $ 3,300 Required: a-1. Complete the following differential cost schedule. a-2. From an operating profit perspective, should O'Neil drop the beef barley line? b. When the product manager for the minestrone soup hears that managers are considering dropping the beef barley line, she points out that many O'Neil customers buy more than one soup flavor and if beef barley is not available from O'Neil, some of them might stop buying the other soups as well. She estimates that 10 percent of the current sales of both broth and minestrone will be lost if beef barley is dropped. b-1. Complete the following differential cost schedule. b-2. Based on the estimate from the project manager, should O'Neil drop the beef barley line? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Complete the following differential cost schedule. Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profit (loss) Status Quo Alternative: Drop Beef Barley Difference Complete this question by entering your answers in the tabs below. Req A1 Req Az Req B1 Req B2 From an operating profit perspective, should O'Neil drop the beef barley line? OYes No < Req A1 Req B1 > Req A1 Req A2 Req B Req B2 When the product manager for the minestrone soup hears that managers are considering dropping the beef barley line, she points out that many O'Neil customers buy more than one soup flavor and if beef barley is not available from O'Neil, some of them might stop buying the other soups as well. She estimates that 10 percent of the current sales of both broth and minestrone will be lost if beef barley is dropped. B1. Complete the following differential cost schedule. Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profit (loss) Status Quo Alternative: Drop Beef Barley Difference (all lower under the alternative) < Req A2 Req B2 > Show less Req A1 Req A2 Req B1 Req B2 When the product manager for the minestrone soup hears that managers are considering dropping the beef barley line, she points out that many O'Neil customers buy more than one soup flavor and if beef barley is not available from O'Neil, some of them might stop buying the other soups as well. She estimates that 10 percent of the current sales of both broth and minestrone will be lost if beef barley is dropped. B2. Based on the estimate from the project manager, should O'Neil drop the beef barley line? Yes No < Req B1 Req B2 > Show less