Cotrone beverages makes energy drinks in three flavors: original, strawberry, and orange. the company is currently operating at 75 percent of capacity. worried about the company's performance, the company president is considering dropping the strawberry flavor. if strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. in addition, the company's total fixed costs would be reduced by 15 percent. segmented income statements appear as follows: product original strawberry orange sales $ 32,800 $ 42,500 $ 51,100 variable costs 22,960 38,250 40,880 contribution margin $ 9,840 $ 4,250 $ 10,220 fixed costs allocated to each product line 4,600 6,300 7,700 operating profit (loss) $ 5,240 $ (2,050 ) $ 2,520 required: a. prepare a differential cost schedule.

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale. required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse. b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this. c. explain the difference between sale of receivables with recourse as oppose to without recourse.