.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fmoreheadstate-bb9.blackboard.com%25 YouTube Maps Translate News Netflix (21) Pinterest 5 Cost Analysis Case ces Saved Amazon.com: Onli... Amazon.com: Pri... W Wattpad - Where... Help Luke Corporation produces a variety of products, each within their 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 $6.20 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 $ 14,710,650 Allocated corporate costs (@5%) $ 14,449,895 735,533 Product-line margin Allowance for tax (@20%) Product-line profit (loss) 15,185,428 $ (474,778) 94,955 (379,823) $ All products at Luke receive an allocation of corporate overhead costs, which is computed as 5 percent 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: Corporate Revenue Corporate Overhead Costs Most recent year Previous year $ 125,750,000 78,100,000 $ 6,287,500 5,301,145 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 following data on product costs for Bubbs: Month Cases Production Costs 1 226,000 $1,170,340 Prev 1 of 1 Next >