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Reynolds, Inc., manufactures several different products, including a premium lawn fertilizer and weed killer that is popular in hot, dry climates. Reynolds is currently operating at less than full capacity because of market saturation for lawn fertilizer. Sales and cost data for a 40-pound bag of Reynolds lawn fertilizer is as follows.  On the basis of this information, which one of the following alternatives should be recommended to Reynolds management?A. Select a different cost driver to allocate its overhead. B. Drop this product from its product line. C. Continue to produce and market this product. D. Increase output and spread fixed overhead over a larger volume base. |