Question: 1. What is the difference between activity-based costing and segment profitability analysis?How would you counter the arguments by other managers concerning the most attractive segments?

1. What is the difference between activity-based costing and segment profitability analysis?How would you counter the arguments by other managers concerning the most attractive segments? Using relevant costs provided above, determine the profitability for each of Happy Chips' business segments.

Q.2. Based on your analysis, should Best Potato Chips consider the changes desired by value saving stores? Why or why not?

Q.3. Should Best Potato Chips eliminate any business segments? Why or why not?

Q. 4. If the price to mass merchandise stores were to increase by 20 percent, would that change your answer to the previous question?

Q.5. Are there factors other than segment profitability that should be considered? If so, what are they?

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