Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1-3 Part question. please explain in detail. ill give a rating if the answer is correct. Erosion costs Heavenly Cookie Company reports the following annual
1-3 Part question. please explain in detail. ill give a rating if the answer is correct.
Erosion costs Heavenly Cookie Company reports the following annual sales and costs for its current product line Click on this icon to download the data from this table Chocolato Snicker- Peanut Lemon Cream- Chip doodle Butter Drop Filled Volume 255,000 203.000 140,000 80,000 93.000 Price S0.40 $0.45 $0.53 $0.47 $0.50 Cost $0.23 S0.19 SO 17 SO 23 $0 32 Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra rich brownies would sell for S0 90 a piece and cost 50 75 to produce. The forecasted brownie volume is 225,000 per year. Introduction of brownies, however wil reduce cookie sales by 105,000, with the following drops in sales per cookie 110,000 in chocolate chip, 39,000 in Snickerdoodle, 28,000 in peanut butter, 8,000 in fomon drop, and 10,000 in cream filled What is the erosion cost of introducing the brownies? What is the not change in annual margin it Mississippi Mud brownies are added to the product line? What is the erosion cost of introducing the brownies $(Round to the nearest dollar) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started