New Belgium Brewing Company has expanded its product offerings to include many varieties of specialty and seasonal brews. Kim Jordan, CEO of New Belgium Brewing Company, realizes that financial success depends on cost control as well as revenue generation.
Required
1. If New Belgium Brewing Company wanted to expand its product line to include malted energy drinks, what activities would it need to perform that are not required for its current product lines?
2. Related to part 1, should the additional overhead costs related to new product lines be shared by existing product lines? Explain your reasoning.