Bravo Baking Co has expanded its product line to include several other special

Bravo Baking Co has expanded its product line to include several other specialty breads. The operating results for the last quarter are provided below. Product Hi-Lo Whole Grain Fruit & Nuts Total
Revenues $67575 $31800 $15900 $115275
Variable prd costs$27030 $12720 $6360 $46110
Var. Sell & Admin. $13515 $6360 $3180 $23055
Contribution Margin$27030 $12720 $6360 $46110
Fixed Product Costs $5000 $5000 $5000 $15000
Fixed Sell & Admin. $5700 $2850 $2850 $11400
Allocated Common Cst$5000 $2500 $2500 $10000
Net Income $11330 $2370 -$3990 $9710
Required: Bravo wants to know the effect on Net Income if it decides to discontinue the Fruit & Nuts product.
If Bravo eliminates Fruit & Nuts 50% of fixed costs can be avoided.
Prepare and incremental analysis showing the Net Income Effect of eliminating the Fruit & Nuts product.
What woud you advise Bravo to do?
Using the Table below compute the Net Income for Bravo Baking after eliminating the Fruit & Nuts product.
Product Hi-Lo Whole Grain Fruit & Nuts Total
Revenues $67575 $31800 $0 $99375
Variable product costs $27030 $12720 $0 $39750
Variable Selling & Administrative costs $13515 $6360 $0 $19875
Contribution Margin $27030 $12720 $0 $39750
Fixed Product Costs $5000 $5000 $2500 $12500
Fixed Selling and Administrative Costs $5700 $2850 $1425 $9975
Allocated Common Costs $5000 $2500 $2500 $10000
Net Income $11330 $2370 -$6425 $7275

based on analysis what recommendation would you make about fruit and nuts?