Integrative Case $5-80($Algo$)$ Cost Estimation, CVP Analysis, and Decision Making $($LO $5-1,3,5,6)$

Luke Corporation produces a variety of products, each within its own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $$5\mathrm{.}90$ per case, has not had the market success that managers expected, and the company is considering dropping Bubbs.

The product$-$line income statement for the past $12$ months follows:

$\backslash$table$[[$Revenue$,,],[$Costs$,,],[,$ Manufacturing costs,$$14,701,650,],[,$ Allocated corporate costs $($@$58),14,446,895,],[$Product$-$line margin,$735,083,15,181,978$