What would you tell him and explain your rationale


Problem

i. Next, ignoring the Sedona Stout information, consider David's question regarding what product line the sales people should emphasize. David wants their sales efforts to maximize profits and utilize the company's current capacity. What would you tell him? Explain your rationale.

ii. Analyzing the sales forecast of root beer, what preliminary course of action do you recommend (in-house or out-source production) and why? Support your recommendation with numbers.

iii. What other issues, concerns, or further analysis do you want to discuss with David? Your issues/concerns could pertain to whether AMI should add root beer as a new product line and, if so, the issues or concerns of producing in-house versus out-sourcing. The issues/concerns should include both numeric and non-numeric issues. Do not just bullet point all kinds of items; instead, talk about specifics and how they relate to this company/situation and why they are important to consider.

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Cost Accounting: What would you tell him and explain your rationale
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