Business Recommendation $2$

What do you recommend we do to address this issue? $0$ of $1$

Our Dragonfire Chocolate Chip cookies could be profitable if we sold more of them. We should discount their price so that the subsequent volume increase will more than make up for the decrease in profitability on each cookie. As they say, "You gotta break some eggs to make some dough..."

We really need to know more than we do$.$ We don't actually know from this analysis which activities drive the cost of manufacturing overhead. We allocated that cost based on direct labor hours without really having assurance that direct labor hours drives those costs up$.$ If we knew in more detail what drives those costs, we might discover that the Dragonfire Chocolate Chip cookies aren't even the issue. Pricing may be a concern, but this is a manufacturing analysis. Let's see that through before we begin making pricing changes.

Chocolate chips are really expensive. If we used $75\%$ fewer chocolate chips in the recipe, we could probably make the Dragonfire Chocolate Chip line profitable. We use so many chocolate chips already, customers might even appreciate reducing how many are in each cookie.

We should just drop the Dragonfire Chocolate Chip cookie line. The day we do$,$ we will instantly make more money since we currently lose money on every single chocolate chip cookie we sell. This isn't complicated. Difficult choices have to be made in business.

Let's just raise the price on the Dragonfire Chocolate Chip line. Inflation has been pretty rough and we haven't passed the increased prices on to consumers. We could waste our time in more meetings, but we are people of action! Let's raise prices and call it a day.