O'Nel Enterprises produces a ine 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 compay is considering drapping ane of the soups, beef barley, in hopes of improving profntablity. If beer barlay is dropped, the revenue associatod with it will be loet and the related varable costs saved. The CFO estimares thet the foued costs will also be reduced by 25 percem The fol owing product line statements are available: Broth Boof Barlay Mnestrone $36,700 $45,800 $54,200 Varlable costs Contribution margin Foxod costs alccatod to each produc: n 5,200 6,000 S(2800 S 3,000 Required: a-1. Complete the fo lowing differential cost schedule. Status Qu Alternative: Drop Beef Barley Less Verieble ecsts Less F Operating proft (oss) a-2. From an operating profit perspectve, should O'Nel drop the beef barley line? O No b. VWhen the product manager for the mineetrone soup hears that managers are considering dropping the boef barley line, she points out that many O'Nel customers buy more than one soup favor and if beef barley is not avaiable from O'Nei, ome of them might stop buying the other soups as wel. She eatimates thet 5 parcent of the current sale of both broth and minestrone will be lost if beef barley is dropped b-1. Complete the folowing d ferential cost schedule Status Que Alternative: Drop lower under the a Boot Barby Revenu Less Verisble ccats Less Fixed eests