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Dairyproducts Ltd has recently developed sales of cream in aerosol dispensers which are sold alongside the company's traditional products of cartons of cream and packets
Dairyproducts Ltd has recently developed sales of cream in aerosol dispensers which are sold alongside the company's traditional products of cartons of cream and packets of cheese. The company is now considering the sale of cream cheese in aerosol dispensers.
It is company policy that any new product must be capable of generating sufficient profit to cover all costs, including estimated initial marketing and advertising expenditure of 1,000,000.
Current weekly production, with unit costs and selling prices, is as follows:
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