5. managerial implications Suppose you encounter a setting such as Example 7.2 where a highly aggregate, impressionism approach is in place and it appears most of the firm’s profit is due to one of the product lines. For instance, suppose in the Example that the first product sells for 275 per unit while the second sells for 450 per unit. A consultant performs a more detailed analysis, based on the modernism school, and reports the unit costs in Table 7.4. This dramatically alters the unit costs, and leads to the conclusion the firm is actually losing money on the product line that originally appeared to be the source of its profit. What is an appropriate response in such a setting? Will profit improve if the second product is abandoned or at least de-emphasized?