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Sublet makes three types of energy drinks: Berry, Mango, and Cherry Cherry is currently not making a profit and if all of variable and
Sublet makes three types of energy drinks: Berry, Mango, and Cherry Cherry is currently not making a profit and if all of variable and 70.00% of its fixed costs can be saved if the product is dropped, should the product be dropped or retained? Berry: Sales = 84,452.99; Variable Costs = 64,452.44; Fixed Costs = 18,254.11 Mango: Sales = 92,452.55; Variable Costs = 59,452.88; Fixed Costs = 17,555.44 Cherry: Sales = 71,124.55; Variable Costs = 61,452.77; Fixed Costs = 15,254.11 What will be the total profit before and after the Cherry energy drink is dropped? Should the Cherry energy drink be kept or be dropped?
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