Ganong Bros. Ltd., located in St. Stephen, New Brunswick, is Canada’s oldest independent candy company. Its products are distributed worldwide. In 1885, Ganong invented the popular “chicken bone,” a cinnamon flavored, pink, hard candy jacket over a chocolate center. The home page of Ganong, listed below, includes information about the company and its products. Address: www.ganong.com/retail/chicken_bones.html, or go to www.wiley.com/college/weygandt

Instructions

Read the description of “chicken bones,” and answer the following.

(a) Describe the steps in making “chicken bones.”

(b) Identify at least two variable and two fixed costs that are likely to affect the production of “chicken bones.”