Danni is reviewing the profitability of his range of drinks. He is considering discontinuing his energy drink products as they look unprofitable. Manufacturing costs are allocated on a volume-basis, and advertising costs and other expenses on the basis of sales. By closing the energy drink production line, he estimates that he would save €5,230 of utility costs and €13,450 of supervisory costs. His advertising costs largely promote the Danni’s Drinks brand, but he would save €3,250 by not running advertisements in sports magazines. Using Table 14.10, what would you advise Danni to do?

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Table 14.10 Danni's Drinks: cost data Original Energy Sugar-free Total Sales 252,500 56,320 130,260 439,080 Cost of goods sold 101,000 34,918 58,617 194,535 Manufacturing 103,765 13,887 40,148 157,800 Advertising 31,226 6,965 16,109 54,300 Other expenses 26,022 5,804 13,424 45,250