- Protected View - Saved to this PC- Search Mailings Review View Help you need to edit, it's safer to stay in Protected View. Enable Editing Project 1 Information Sheet 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 $5.15 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 last month follows: $ 1,345,180 S Revenue Costs Production costs Product line margin Allowance for tax (20%) Product-line profit (loss) (1.280.451) 64,729 S (12.945.80) $ 51,783.20 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 production costs for Bubbs for the past 12 months Month Cases 1 211,000 2 219 200 3 216 900 4. 232,000 5 239.900 6 241,000 7 222.200 8 249.200 9 240,800 10 254,600 11 252,200 12 261,200 Production Costs $1,147,828 1,169,328 1.177,981 1,193,523 1,195,827 1,216,673 1.191,699 1.234,774 1,233,226 1,245 325 1 249,760 1 280,451 Assume that the relevant range of production is between 150,000 and 350,000 cases O