Keep-or-Drop Decision Refer to the information for Petoskey Company from Exercise 13-29. Assume…

Keep-or-Drop Decision Refer to the information for Petoskey Company from Exercise 13-29. Assume that 20 percent of the Alanson customers choose to buy from Petoskey because it offers a full range of products, including Conway. If Conway were no longer available from Petoskey, these customers would go elsewhere to purchase Alanson.

Required:

Conceptual Connection: Estimate the impact on profit that would result from dropping Conway. Explain why Petoskey should keep or drop Conway.

 

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