Over the past three years, Ice Scream has expanded its product offerings from basic chocolate and vanilla flavors to include many varieties of certified organic ice cream flavors. Ben Jerrie, founder of the business, realizes that future financial success depends on cost control as well as revenue generation. He is considering expansion of the company's product line to include yogurt smoothies.
Imagine you have been given the task of developing a working plan for this expansion, and the central question of overhead costs must be addressed. Should the additional overhead cost related to new product lines be shared by existing product lines?