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Required: a. Complete the table under the current cost system. Determine which product(s), if any, should be dropped. What characteristic of the product that should be dropped makes it appear relatively unprofitable? (10 pts) b. Assume that CBI drops the product(s) identified in requirement (a) above. Calculate the gross profit margin percentage for the remaining products. Assume that CBI can sell all products that it manufactures and that it will use the excess capacity from dropping a product to produce more of the most profitable product. If CBI maintains its current rule about dropping products, which additional products, if any, should CBI drop under the existing cost system? (15 pts) c. Assume that CBI drops the products identified in requirements (b) and (c) above. Recalculate the gross profit margin percentage for the remaining product(s) and ascertain whether any additional product(s) should be dropped. Which additional products, if any, should CBI drop under the existing cost system? (15 pts) d. Discuss the outcome and any recommendations you might make to management regarding the current cost system and decision policies. (10 pts) Required: a. Complete the table under the current cost system. Determine which product(s), if any, should be dropped. What characteristic of the product that should be dropped makes it appear relatively unprofitable? (10 pts) b. Assume that CBI drops the product(s) identified in requirement (a) above. Calculate the gross profit margin percentage for the remaining products. Assume that CBI can sell all products that it manufactures and that it will use the excess capacity from dropping a product to produce more of the most profitable product. If CBI maintains its current rule about dropping products, which additional products, if any, should CBI drop under the existing cost system? (15 pts) c. Assume that CBI drops the products identified in requirements (b) and (c) above. Recalculate the gross profit margin percentage for the remaining product(s) and ascertain whether any additional product(s) should be dropped. Which additional products, if any, should CBI drop under the existing cost system? (15 pts) d. Discuss the outcome and any recommendations you might make to management regarding the current cost system and decision policies. (10 pts)

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