1.Identify the flaws associated with the current method of assigning shipping and warehousing costs to Sharp’s products.
2.Compute the shipping and warehousing cost per ton of LLHC sold using the new method suggested by Jennifer and Jan.
3.Using the new costs computed in Requirement 2, compute the profit per ton of LLHC. Compare this with the profit per ton computed using the old method.Do you think that this same effect would be realized for other low-volume products? Explain.
4.Comment on Ryan’s proposal to drop some high-volume products and place more emphasis on low-volume products. Discuss the role of the accounting system in supporting this type of decision making.
5.After receiving the analysis of LLHC, Ryan decided to expand the analysis to all products. He also had Kaylin reevaluate the way in which mill overhead was as signed to products. After the restructuring was completed, Ryan took the fol-lowing actions: (a) the prices of most low-volume products were increased,(b)the prices of several high-volume products were decreased, and (c) some low- volume products were dropped. Explain why his strategy changed so dramatically.