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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 yeac, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $$6\mathrm{.}25$ 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$[[$Revenuse$,$$ $14,712,150],[$Costs$,,],[$Manufacturing costs,$ $14,458,395,],[$Allocated corporate cests $(05\%),735,608,15\mathrm{.}306,003],[$Product$-$tine margts,,$5(473,853)],[$Allowance for tax $($$$204),,97,771],[$Product$-11$ne profit $($loss$),,5(377,482)$