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Should rite-way drop its deluxe product

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Reference no: EM13918000

The Rite-Way Corporation, a manufacturer of a line of writing instruments, has completed a ROAM analysis for all products. The deluxe model in its line of fountain pens sells for $5.50 but produces a ROAM of 8.3 percent, well below the 23.5 percent average for the other products. Management believes rising raw material costs, such as gold and silver prices, are beyond Rite-Way's control. Should Rite-Way drop its deluxe product? Should Rite-Way eliminate commissions paid to sales representatives for deluxe sales?

Reference no: EM13918000

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