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Erosion costs. Heavenly Cookie Company reports the following annual sales and costs for its current product line: Click on this icon to download the dala
Erosion costs. Heavenly Cookie Company reports the following annual sales and costs for its current product line: Click on this icon to download the dala from this table Chocolate Snicker- Peanut Lemon Cream- Chip doodle Butter Drop Filled Volume 252,000 209,000 141.000 80,000 98,000 Price $0.50 $0.46 $0.52 $0.49 S0.53 Cost $0.20 $0.18 $0.18 $0.23 S0.31 Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich brownies would sell for $0.91 a piece and cost $0.85 to produce. The forecasted brownie volume is 224,000 per year. Introduction of brownies, however, will reduce cookie sales by 192,000, with the following drops in sales per cookie: 112,000 in chocolate chip, 36,000 in snickerdoodle, 25,000 in peanut butter, 9,000 in lemon drop, and 10,000 in cream-filled. What is the erosion cost of introducing the brownies? What is the net change in annual margin if Mississippi Mud brownies are added to the product line? What is the erosion cost of introducing the brownies? s(Round to the nearest dollar.) ) Enter your answer in the answer box and then click Check Answer. ? parts remaining Clear All Check Answer Erosion costs. Heavenly Cookie Company reports the following annual sales and costs for its current product line: Click on this icon to download the dala from this table Chocolate Snicker- Peanut Lemon Cream- Chip doodle Butter Drop Filled Volume 252,000 209,000 141.000 80,000 98,000 Price $0.50 $0.46 $0.52 $0.49 S0.53 Cost $0.20 $0.18 $0.18 $0.23 S0.31 Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich brownies would sell for $0.91 a piece and cost $0.85 to produce. The forecasted brownie volume is 224,000 per year. Introduction of brownies, however, will reduce cookie sales by 192,000, with the following drops in sales per cookie: 112,000 in chocolate chip, 36,000 in snickerdoodle, 25,000 in peanut butter, 9,000 in lemon drop, and 10,000 in cream-filled. What is the erosion cost of introducing the brownies? What is the net change in annual margin if Mississippi Mud brownies are added to the product line? What is the erosion cost of introducing the brownies? s(Round to the nearest dollar.) ) Enter your answer in the answer box and then click Check Answer. ? parts remaining Clear All Check
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