Oregon Ice Cream Company has expanded its product offerings from basic chocolate and vanilla type flavors to nearly 100 flavors of ice creams, yogurts, and sorbets, and more than 500 different frozen dairy treats. Tom Gleason’s managers for Oregon Ice Cream Company realize that financial success depends on cost control as well as revenue generation.

Required
1. If Oregon Ice Cream Company wanted to expand its product line to include yogurt smoothies, what activities would it need to perform that are not required for its current product lines?
2. Related to part 1, should the additional overhead costs related to new product lines be shared by existing product lines? Explain your reasoning.