Bravo Baking Co has expanded its product line to include several other specialty breads. The operating results for the last quarter are provided below. Product Hi-Lo Whole Grain Fruit & Nuts Total Revenues $67,575 $31,800 $15,900 $115,275 Variable prd costs$27,030 $12,720 $6,360 $46,110 Var. Sell & Admin. $13,515 $6,360 $3,180 $23,055 Contribution Margin$27,030 $12,720 $6,360 $46,110 Fixed Product Costs $5,000 $5,000 $5,000 $15,000 Fixed Sell & Admin. $5,700 $2,850 $2,850 $11,400 Allocated Common Cst$5,000 $2,500 $2,500 $10,000 Net Income $11,330 $2,370 -$3,990 $9,710 Required: Bravo wants to know the effect on Net Income if it decides to discontinue the Fruit & Nuts product. If Bravo eliminates Fruit & Nuts 50% of fixed costs can be avoided. Prepare and incremental analysis showing the Net Income Effect of eliminating the Fruit & Nuts product. What woud you advise Bravo to do? Using the Table below, compute the Net Income for Bravo Baking after eliminating the Fruit & Nuts product. Product Hi-Lo Whole Grain Fruit & Nuts Total Revenues $67575 $31800 $0 $99375 Variable product costs $27030 $12720 $0 $39750 Variable Selling & Administrative costs $13515 $6360 $0 $19875 Contribution Margin $27030 $12720 $0 $39750 Fixed Product Costs $5000 $5000 $2500 $12500 Fixed Selling and Administrative Costs $5700 $2850 $1425 $9975 Allocated Common Costs $5000 $2500 $2500 $10000 Net Income $11330 $2370 -$6425 $7275

based on analysis, what recommendation would you make about fruit and nuts?