EasyFind, Inc. sells StraightShot golf balls for$19per dozen, with a variable manufacturing cost of$11per dozen. EasyFind is planning to introduce a lower priced ball, Duffer's Delite, that will sell for$10per dozen with a variable manufacturing cost of$4per dozen. The firm currently sells48,127StraightShot units per year and expects to sell20,741units 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$6,637.

What is the unit contribution ($) per one dozen StraightShot golf balls?

Flag question: Question 2

EasyFind, Inc. sells StraightShot golf balls for$23per dozen, with a variable manufacturing cost of$12per dozen. EasyFind is planning to introduce a lower priced ball, Duffer's Delite, that will sell for$14per dozen with a variable manufacturing cost of$4per dozen. The firm currently sells48,432StraightShot units per year and expects to sell23,854units 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$6,550.

What is the total yearly dollar contribution of Straight Shot balls prior to the launch of Duffer's Delight?

Flag question: Question 3

The local shampoo market is dominated by two brands: Clean Hair, which owns 59%of the market, and Sassy, which owns the remainder. A new brand, All-Over Shampoo, manufactured by the same makers of Sassy, is attempting to break into the shampoo market with an all-natural shampoo that they claim will strengthen hair as it is washed. The local shampoo market volume is 2,350bottles per month. All-Over Natural Shampoo sells410bottles in their first month. The total market for shampoo is mature and no growth is expected to result from All-Over's entry. Variable costs for All-Over Shampoo are estimated at$2.71per bottle, with a selling price of$5.06.

If management estimates fixed costs to be $8,500, what is the Break-Even Volume in bottles for All-Over Natural Shampoo?

Flag question: Question 4

In the last year, Bakers Score's Donuts and Sweets has sold, on average,1,350''Fudgie'' brownies per week. This week they introduced fat-free brownies and sold218at a price of$4each. They noticed the cannibalization rate of fat-free brownies on Fudgie brownies was46%. Bakers Score's sells their "Fudgie" brownies for$3, with a variable cost of$1. The new Fat-Free Brownies have a variable cost of$2.

What is the weekly contribution ($) for Bakers Score's "Fudgie" brownie before the introduction of their Fat-Free Brownies?

Flag question: Question 5

In the last year, Bakers Score's Donuts and Sweets has sold, on average,1,214''Fudgie'' brownies per week. This week they introduced fat-free brownies and sold221at a price of$3each. They noticed the cannibalization rate of fat-free brownies on Fudgie brownies was44%. Bakers Score's sells their "Fudgie" brownies for$3, with a variable cost of$1.2. The new Fat-Free Brownies have a variable cost of$2.

Assuming fixed costs for Fat-Free brownies are $350, how many of this new product will they have to sell to break even before cannibalization is taken into consideration?