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Can you please assist? CoursHeroTranscribedText: Cotrone Beverages makes energy drinks In three flavors: Original, Strawberry,...

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Accounting

Can you please assist?

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CoursHeroTranscribedText: Cotrone Beverages makes energy drinks In three flavors: Original, Strawberry, and Orange. The company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry Is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented Income statements appear as follows: Product Original Strawberry Orange Sales $32, 608 $42,908 $51, 109 Variable costs 22, 820 38, 610 40, 880 Contribution margin $ 9,780 $ 4, 298 $10, 220 Fixed costs allocated to each product line 5,090 5,908 7,690 Operating profit (loss) $ 4,780 $ (1, 610] $ 2, 620 Required: a. Prepare a differential cost schedule. (Select option "Increase" or "decrease", keeping Status Quo as the base. Select "none" If there Is no effect.) Alternative: Status Quo Drop Difference Strawberry Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profit (loss)

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