Price Candies (PC) makes three types of chocolate candy bars. The head of marketing, Nathan Lord found the chart below and believes PC should drop the Almond line. He asks controller, Faye Martin, to review the situation and determine the fate of the Almond Line.

Required:
a. Review the information above and determine the fate of the Almond Line. Prepare your answer in good form. Note: Facility and product level costs are fixed and will not change; they are allocated based upon sales.
b. Prepare a memo defending your position on this important issue.

Question

Price Candies (PC) makes three types of chocolate candy bars. The head of marketing, Nathan Lord found the chart below and believes PC should drop the Almond line. He asks controller, Faye Martin, to review the situation and determine the fate of the Almond Line.
  
Required:
a. Review the information above and determine the fate of the Almond Line. Prepare your answer in good form. Note: Facility and product level costs are fixed and will not change; they are allocated based upon sales.
b. Prepare a memo defending your position on this important issue.

Quizplus · Accepted Answer

The Answer of Price Candies (PC) makes three types of chocolate candy bars. The head of marketing, Nathan Lord found the chart below and believes PC should drop the Almond line. He asks controller, Faye Martin, to review the situation and determine the fate of the Almond Line.
  
Required:
a. Review the information above and determine the fate of the Almond Line. Prepare your answer in good form. Note: Facility and product level costs are fixed and will not change; they are allocated based upon sales.
b. Prepare a memo defending your position on this important issue.

Price Candies (PC) Makes Three Types of Chocolate Candy Bars