Question
Coca cola is planning a new Gen2 smartcup, but recognizes that the product will compete with the company's original Gen1 smartcup. Contribution margin on the
Coca cola is planning a new "Gen2" smartcup, but recognizes that the product will compete with the company's original "Gen1" smartcup. Contribution margin on the Gen1 smartcup is $8.67 per unit, while contribution margin on the new Gen2 smartcup will be $9.39 per unit. Coca cola had expected to sell 118,000 of its Gen1 smartcup but expects to sell only 59,300 units of the Gen1 if the new Gen2 is introduced. The company forecasts sales of the new Gen2 smart plate at 116,400 units if it is launched. What would be WEIGHTED CONTRIBUTION MARGIN for Coca cola' new Gen2 smartcup, given these projections? (Rounding: penny / two decimal places.) Your Answer:
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