Blue Ridge Case - Activity Based Costing (ABC)

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…enable managers to determine if price discounting will encourage increased purchases while minimizing profit erosion. In conclusion Blue Ridge defined the right activities; however they might want to consider conducting a product profitability analysis. This will enable them to manage the product mix more efficiently and identify future cost cutting in initiatives. In addition, we fell this would be another valuable exercise in determining weather or not going national would be profitable for Blue Ridge.