1.Utilizing the information above, calculate the full product cost (on a per gallon basis) of the Peanut Butter Bacon and Chocolate flavours utilizing:

a.Samantha's more traditional costing system.

b.Laura's suggestion to use activity-based costing.

2.What are the impacts, if there is any at all, of switching CSL's costing method? In particular, are the any significant contrasts between traditional costing and activity-based costing in terms of:

a.Their impact on costs for independent products.

b.Their effect on CSL's total firm income? (assuming everything else remains the same, such as production and sales prices)

c.If there are significant contrasts, why are they present? If there are no significant contrasts, why are they not present?

3.What would you recommend to be Samantha's next step, based on this analysis? Explain.