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Price Candies (PC) makes three types of chocolate candy bars. The head of marketing, Nathan Lord found the chart below and believes PC should drop
Price Candies (PC) makes three types of chocolate candy bars. The head of marketing, Nathan Lord found the chart below and believes PC should drop the Almond line. He asks controller Faye Martin to review the situation and determine the fate of the Almond Line. Solid Crispy Almond Chocolate Chocolate Chocolate Sales $300,000 $500,000 $400,000 Unit Costs ($100,000) ($150,000) ($250,000) Facility & Product ($150,000) ($250,000) ($200,000) Costs Segment Income $50,000 $100,000 ($50,000) Required: 1.) Review the information below and determine the fate of the Almond Line. Prepare your answer in good form. Note-facility and product level costs are fixed and will not change; they are allocated based upon sales. 2.) Prepare a memo defending your position on this important issue.
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