Introduction For the past two years, Ever Last Ovenware has recorded decreased sales due to a downturn in the economy. The production manager has missed to meet his target of earning a 25% return on assets from the sales of the Ever Last Ovenware (Rock Cookware Inc, n.d. P.1). All costs attributed to the product line are relevant costs and profitability of the product line is not possible by reallocating the costs to other cost centers. This informed the production manager to commission the redesigning of the product. Redesigning the product led to a reduction in 35% of the ...
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