Answer:
Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 % 
Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are  20 % 
Explanation:
Cotrone Beverages
Differential Analysis
                           Totals                    Totals             Difference / Change
                       including    (less)    Without   (equals)
                      Strawberry             Strawberry
Sales                            253,200    167,600           85600  Decrease
Variable costs              201,400    124,200          77200    Decrease
Fixed costs allocated  35,600        28,480          7120    Decrease
<u>Operating profit (loss)   </u><u>13,200       14,920           (1720)     Increase</u>
<u>Working </u>
<u>Total Fixed Costs Reduced will be = </u> 35,600 *20%= 7120
Here we see the profit is increased by 1720 therefore strawberry line should be dropped.
Cotrone Beverages
Differential Analysis
                           Totals                    Totals             Difference / Change
                       including    (less)    Without   (equals)
                      Strawberry             Strawberry
Sales                            253,200    167,600           85600  Decrease
Variable costs              201,400    124,200          77200    Decrease
Contribution margin     51,800       43,400           8,400    Decrease
Fixed costs allocated  35,600        23,600          12000    Decrease
<u>Operating profit (loss)   </u><u>13,200       16,800           (3,600)   Increase</u>
<u></u>
Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600
<u><em>Working </em></u>
<u><em>We find the totals with and without the strawberry product line and then subtract to find the   differential costs</em></u>
Cotrone Beverages
Product                        Original             Strawberry       Orange      Total
Sales                            $65,200            $85,600         $102,400   253,200
Variable costs              44,000              77,200             80,200      201,400
Contribution margin $21,200                $8,400          $22,200       51,800
Fixed costs allocated 9,400                  12,000              14,200      35,600
Operating profit (loss) $11,800               $(3,600)           $8,000     13,200
If we drop the strawberry line then the new totals would be 
Product                        Original          Orange      Total
Sales                            $65,200       $102,400   167,600
Variable costs              44,000          80,200      124,200
Contribution margin $21,200          $22,200       43,400
Fixed costs allocated 9,400               14,200      23,600
Operating profit (loss) $11,800           $8,000     16,800