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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

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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 Research and development Selling expenses Profit before taxes Askin Bskin Total $ 4,001,000 $2,600,500 $ 6,601,500 (2,600,500) (2,101,000) (4,701,500) $ 1,400,500 $ 499,500 $ 1,900,000 (1,171,000) (130,500) $ 598,500 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

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