Question: Problem 2 (25 points) Use the information in Problem 1. Using your knowledge in responsibility accounting, you observed that there should be corrective actions to

 Problem 2 (25 points) Use the information in Problem 1. Using

Problem 2 (25 points) Use the information in Problem 1. Using your knowledge in responsibility accounting, you observed that there should be corrective actions to be done in presenting the financial performance of Ipanema and Havaianas product lines. You are asked by your manager to do the following: Required: 1. Recast the income statements of both Ipanema and Havaianas using the concepts in Responsibility Accounting. (50\%) 2. What are your observations after you recast the income statements of both product lines? Is your decision in Problem 1 about Havaianas product line congruent with the information that you gather in Problem 2? Explain thoroughly. (50\%)

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