Contribution Margin

Daisy Inc. current products comprises of the followings:

Moon: The selling price is RM$15\mathrm{.}00$ per unit, with production cost of $32\%$ per unit, and sales volume on average is $250,000$ units per year.

River: The selling price is RM$40\mathrm{.}00$ per unit, with production cost of $40\%$ of the selling price per unit, and sales volume on average is $130,000$ units per year.

The company is planning to introduce another product, Allure, which is expected to have an average sale of $200,000$ units per year. The selling price will be at RM$28\mathrm{.}00$ per unit, and production cost of RM$22\mathrm{.}00$ per unit. The introduction of the new product will decrease sales of Moon by $21\%,$ and to River of $30\%.$

$1)$ Total Sales Revenues of the existing products are RM$\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$2)$ Total Net Contribution Margin of the company is RM$\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$3)$ Percentage of contribution margin per unit for Moon is $\_\_\_\_\_\_\_\_\%,$

$4)$ With the introduction of the new product, River's sales will be reduced to $\_\_\_\_\_\_\_\_\_\_$ units.

$5)$ Total Sales Revenues with the new product are RM$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$6)$ Total Net Contribution Margin with the new products is RM$\_\_\_\_\_\_\_\_\_\_\_\_.$

$7)$ Total Erosion Cost with the introduction of the new products is RM$\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$8)$ The company should proceed not with the production of Allure.

a$.$ True

b$.$ False