The Casemix Company produces and sells three product lines: coffee makers, hair dryers and food processors. The hair dryer market is very competitive and Casemix competitors regularly lower their prices forcing Casemix to adjust their own. According to the current cost accounting system, the hair-dryer product line's profit is relatively low. Therefore, decreasing the sales price would quickly lead to losses for this product line. The managing team starts questioning their cost accounting system and considers implementing an Activity-Based Costing system. Students/participants are requested to calculate the cost and the profit of each product line using this ABC system, to analyze the results and to make recommendations regarding the company's pricing policy and strategy for each of the three product lines.