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C-10 Q2. Click on this icon to download the data from this table Chocolate Chip Snicker- doodle Peanut Butter Lemon Drop Cream- Filled Volume 252,000

C-10 Q2.

Click on this icon

to download the data from this table

Chocolate

Chip

Snicker-

doodle

Peanut

Butter

Lemon

Drop

Cream-

Filled

Volume

252,000

203,000

142,000

84,000

90,000

Price

$0.50

$0.46

$0.55

$0.49

$0.58

Cost

$0.23

$0.18

$0.16

$0.21

$0.32

Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich brownies would sell for $0.90 a piece and cost $0.80 to produce. The forecasted brownie volume is 222,000 per year. Introduction of brownies, however, will reduce cookie sales by 195,000, with the following drops in sales per cookie:111,000 in chocolate chip, 38,000 in snickerdoodle, 27,000 in peanut butter,9,000 in lemon drop, and 10,000 in cream-filled. What is the erosion cost of introducing the brownies? What is the net change in annual margin if Mississippi Mud brownies are added to the product line?

Help me with all three parts

What is the erosion cost of introducing the brownies?

(Round to the nearest dollar.)

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