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6 View previous stript Ken Yalters, the COO of FreshSkin, asked his cost management team for a product line profitability analysis for his firm's

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6 View previous stript Ken Yalters, the COO of FreshSkin, asked his cost management team for a product line profitability analysis for his firm's two products - Askin and Bskin. The two products are skin care products that require a large amount of research and development and advertising. He received the report below. Ken concluded that Askin was the more profitable product and that perhaps cost-cutting measures should be applied to the Bskin product Sales Cost of goods sold Gross profit Askin $4,000,000 (2,600,000) $ 1,400,000 Research and development Selling expenses Profit before taxes askin $ 2,600,000 (2,100,000) $ 500,000 Total $ 6,600,000 (4,700,000) $1,900,000 (1,170,000) (130,000) Seventy-five percent of the research and development and selling expenses were traceable to Askin Profit before taxes for the Askin product, per life-cycle income statements, is: $600,000

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