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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 bro download the data
Erosion costs. Heavenly Cookie Company reports the following annual sales and costs for its current product line: Click on this icon bro download the data from this table Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich brownies would sell for $0.96 a piece and cost $0.85 to produce. The forecasted brownie volume is 225,000 per year. Introduction of brownies, however, will reduce cookie sales by 193,000 , with the following drops in sales per cookie: 112,000 in chocolate chip, 36,000 in snickerdoodle, 27,000 in peanut butter, 8,000 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 What is the erosion cost of introducing the brownies? \$ (Round to the nearest dollar.) What is the net change in annual margin if Mississippi Mud brownies are added to the product line? $ (Round to the nearest dollar.)
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