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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
Lemony
Lemonade
The company plans to introduce Product C which will affect the sales volume of the current products by each.
Lavender will be sold for RM with production cost of of selling price, and the sales volume is expected to be units.
Complete the assessment.
Total sales revenues of Lemon is RM
Total Sales Revenues of the company's existing products are RM
The production cost per unit for Lemony is RM
Total production cost of the existing product is RM
Net contribution margin per unit for Lemonade is RM
Total contribution margin of the existing products is RM
The total sales revenues with the new product is RM
Total contribution margin with the new product will be RM
The introduction of Lavender has caused RM in erosion cost of the existing products.
The profit contribution margin with the new product is
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