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RhodesRhodes Inc. manufactures only two products, Medium ( 4 2 - inch ) and Large ( 6 3 - inch ) plasma screen TVs .
RhodesRhodes Inc. manufactures only two products, Mediuminch and Largeinch plasma screen TVs To generate adequate profit and cover its expenses throughout the value chain, RhodesRhodes prices its TVs at of manufacturing cost. The company is concerned because the Large model is facing severe pricing competition, whereas the Medium model is the lowprice leader in the market. The CEO questions whether the cost numbers generated by the accounting system are correct. He has just learned about ABC and wants to reanalyze this past year's product costs using an ABC system. Information about the company's products this past year follows:
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