accounting productline 498758

Scenario: RYT (aka RotYourTeeth) Candy Company sells lollipops.

Don't use plagiarized sources. Get Your Custom Essay on
accounting productline 498758
For $10/Page 0nly
Order Essay

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.

Cherry

Lemon

Blueberry

Sales

$18,000

$26,000

$9,000

COGS

7,000

12,000

4,000

Gross Profit

11,000

14,000

5,000

Selling and Admin Exp

7,000

8,000

6,000

Net Income

4,000

6,000

(1,000)

admin

Recent Posts

Economic Debate #3- Progressive Income Tax – The Homework Helper

Economic Debate- Progressive Income Tax For this Economic Debate, we are going to discuss the…

2 years ago

MKT 6120 – Marketing Management – Davis Learning Engagement #7

TOPIC: Going Global Discussion Thread 1 (initial post due Wednesday for full credit) Please note:…

4 years ago

jvjvjhvjhvhjvj

Assignment Topic This week will culminate in the creation of a narrated PowerPoint to create…

4 years ago

Students are supposed to select a technological organization of their choice.

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted…

4 years ago

Increases the risk of wildfires

you need to post your 2-page information flier to share with your Final Project Group.…

4 years ago

Statistics for Technology management

discussion: Discuss the methods used at your company to measure and ensure quality products and…

4 years ago