1. The consultant analyzed Galaxy Inc.'s costs and profits for its two products, R2D2 and BB8, using both traditional costing and activity-based costing. 2. Under traditional costing, both products appeared profitable. However, ABC revealed that BB8 was actually unprofitable due to higher overhead costs associated with its production. 3. The consultant recommended not expanding BB8 sales or production since it loses money for the company. Focusing on more profitable products like R2D2 would improve overall profits. ABC provides more accurate cost information to make better strategic decisions.