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Q7.45: Bubbly Beverages currently manufactures fifteen products, two of which are unprofitable: grape soda and cherry soda. According to Bubbly's estimates, if it discontinues the
Q7.45: Bubbly Beverages currently manufactures fifteen products, two of which are unprofitable: grape soda and cherry soda. According to Bubbly's estimates, if it discontinues the grape soda, it would save $48,500 in fixed costs and see its company-wide contribution margin drop by $41,900. Similarly, if it discontinues the cherry soda, it would save $37,700 in fixed costs and see its company-wide contribution margin drop by $35,200. Given these estimates, Bubbly should A discontinue both types of soda B discontinue the grape soda but continue producing the cherry soda. c discontinue the cherry soda but continue producing the grape soda D continue producing both types of soda
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