Integrative Case 5-72 (Algo) Cost Estimation, CVP Analysis, and Decision Making (LO 5-4, 5, 9) d and Luke Corporation produces a variety of products, each within their own division. Last year, the managers at Luke de began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $5.35 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: Revenue Costs Manufacturing costs $ 14,685,150 Allocated corporate costs (5%) $ 14,441,395 734,258 15,175,653 (490,581) 98,100 $ (392,403) Product-line margin Allowance for tax (820%) Product-line profit (less) All products at Luke receive an allocation of corporate overhead costs, which is computed as 5 perceat of product revenue. The 5 percent rate is computed based on the most recent year's corporate cost as a percentage of revenue. Data on corporate costs and revenues for the past two years follow: Most recent year Previous year Corporate Revenue) Corporate Overhead Costs $ 108,750,000 76,400,000 $5,437,500 4,703,155 Roy O. Andre, the product manager for Bubbs, is concerned about whether the product will be dropped by the company and has employed you as a financial consultant to help with some analysis. In addition to the information given, Mr. Andre provides you with the oduct costs for Bubbs