Discontinue a Product Problem This Problem is worth 5% of your


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Last Comp Problem + a Discontinued Product Problem (using the Last Comp Problem’s data). If you are willing and able, I would like your help with these final two assignments. Please take a look and let me know by Sunday if you are willing and able to take these one for me. Please keep the each problem separate from each other when completing them. Thank you very much as always! Discontinued Product – use data from Last Comp Problem – Part B.docx Discontinue a Product Problem This Problem is worth 5% of your final grade. Scenario: RYT (aka RotYourTeeth) Candy Company sells lollipops. Last year the company sold 10,000,000 lollipops for $1,000,000. The Variable Costs were $350,000 and the Net Profits were $100,000 Administration has directed management to double profits in the next year. ASSIGNMENT: DETERMINE whether RYT should discontinue a product line to increase profitability. RYT has been evaluating its various product lines and is specifically analyzing one location that produces three flavors: Cherry, Lemon, and Blueberry. Further analysis indicates that 20% of COGS is variable and 30% of Selling and Admin expenses are variable. Given the following data for the month of September, RYT is considering discontinuing the Blueberry flavor. What would you advise? Support your position. Sales COGS Gross Profit Selling and Admin Exp Net Income Cherry $18,000 7,000 11,000 7,000 4,000 Lemon $26,000 12,000 14,000 8,000 6,000 Blueberry $9,000 4,000 5,000 6,000 (1,000) Read more

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