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Elon Mist sales details on the existing products are as follows: The company plans to introduce Product C, which will affect the sales volume of
Elon Mist sales details on the existing products are as follows: The company plans to introduce Product C, which will affect the sales volume of the current products by 25% each. Lavender will be sold for RM32.00 with production cost of 45% of selling price, and the sales volume is expected to be 25,000 units. Complete the assessment. (1) Total sales revenues of Lemon is RM (2) Total Sales Revenues of the company's existing products are RM (3) The production cost per unit for Lemony is RM (4) Total production cost of the existing product is RM (5) Net contribution margin per unit for Lemonade is RM (6) Total contribution margin of the existing products is RM (7) The total sales revenues with the new product is RM (8) Total contribution margin with the new product will be RM (9) The introduction of Lavender has caused RM in erosion cost of the existing products. (10) The profit contribution margin with the new product is %. (11) Using erosion cost basis, the company should proceed to introduce Lavender. True OR
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