Question
EasyFind, Inc. sells StraightShot golf balls for $22 per dozen, with a variable manufacturing cost of $11 per dozen. EasyFind is planning to introduce a
EasyFind, Inc. sells StraightShot golf balls for $22 per dozen, with a variable manufacturing cost of $11 per dozen. EasyFind is planning to introduce a lower priced ball, Duffer's Delite, that will sell for $13 per dozen with a variable manufacturing cost of $5 per dozen. The firm currently sells 47,900 StraightShot units per year and expects to sell 20,600 units of the new Duffer's Delight golf ball if it is introduced (1 unit = 12 golf balls packaged together). Management projects the fixed costs for launching Duffer's Delight golf balls to be $9,720.
What is the total yearly dollar contribution of Straight Shot balls prior to the launch of Duffer's Delight?
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