ONeil 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 70 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:

lse, and ther efnd .wnsta, casts saved The 8tmaters that the f.ed ctets w1 bergaced by 25 percent Operating pre-o Required: 0.1. Complete the olowing dinerentiel cost schea Status Quro Beet Barker saigin Fixed cosls 2. From an oparating proft porspectva should ONal drop the babarlay lihe? No sit n aoeon ne beet bane ime sna sorts out that many ON el custo e s buy mo e ta an Deet t ay is on avaiable nom O Nasome o mem s t op turn w so ps as ea e est ates that 10 percenter the cument sales b. When he p oact mana ar f the es a esse ears ma mana es are of beth breth end mineatone wl be lest r boaf berey is droppad ore sou a er b-1.Cophe tha toling cifenantial co schadula Drop Comnbuton maigin Fboed conts Operating prot0s5 b-2 Bazed on the estmate from the project manager, should ONeil cropthe beet barley ne? O yes O No Windows Ink Workspace