Golden Chocolate Inc. of Brooklyn, a manufacturer of chocolate bars, learned that a Connecticut child suffered a mild allergic reaction to the nuts in its eandy bar. The wafer in the chocolate bar contains ground hazelnuts, but the candy bar’s label didn’t include nuts in its list of ingredients.’ Suppose you have been hired to advise Golden Chocolates about how to respond to this situation and how to prevent related potential problems.

Required: Assume Candace Sugarbaker is the company president. Write her a memo making a recommendation or recommendations. For each recommendation, describe the effect you think it will have on Golden Chocolate’s sales, fixed costs, variable costs, and break-even point. Include any other factors you think Golden’s managers should consider when they make this decision.  Lo1