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Discontinue Product Problem: RYT (aka RotYourTeeth) Candy Company




Scenario: RYT (aka RotYourTeeth) Candy Company sells lollipops. Last year the company sold 10,000,000 lollipops for $1,000,000. The Variable Costs were $350,000 and the Net Profits were $100,000 Administration has directed management to double profits in the next year.;ASSIGNMENT: DETERMINE whether RYT should discontinue a product line to increase profitability.;RYT has been evaluating its various product lines and is specifically analyzing one location that produces three flavors: Cherry, Lemon, and Blueberry. Further analysis indicates that 20% of COGS is variable and 30% of Selling and Admin expenses are variable.;Given the following data for the month of September, RYT is considering discontinuing the Blueberry flavor. What would you advise? Support your position.;View attatchment


Paper#74614 | Written in 18-Jul-2015

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