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EROSION COST Elon Mist sales details on the existing products are as follows: Product Sales Vol ( Unit ) Selling Price per Unit ( RM

EROSION COST
Elon Mist sales details on the existing products are as follows:
Product Sales Vol
(Unit)
Selling Price per Unit (RM)
Product Cost (% of selling price)
Lemon 20,0002530%
Lemony 15,0003335%
Lemonade 12,0004042%
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 ________%.

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