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Describe the issue the company is facing

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Reference no: EM132872035

Question -

1. Describe the issue the company is facing.

2. Calculate the costs for the four favors using ABC, reproduce the income statement, and calculate the new profit margin for each flavor.

3. Compare the assigned overhead cost of each flavor (per unit) under both methods. Analyze why has ABC changed the total cost assigned to each flavor? provide tangible examples from the case to support your analysis. Which flavors are mispriced?

4. What actions may management consider in addressing the problems the company is facing?

Reference no: EM132872035

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