Frosty Desserts currently sells 100,000 of its Choco Delight desserts for $3.50 each. Its cost per serving is $1.75. Their product development team has come up with a new Double Fudge Wonder that is expected to sell 130,000 units at a price of $4.50. Its cost per serving is $2.50. It is estimated that after the launch of Double Fudge Wonder sales of Choco Delight will drop by 15%. 1. What is the contribution margin for Choco Delight right now? 2. What is the expected contribution margin for Frosty Desserts with the new product introduction (use the below format)? Contribution Margin for Double Fudge Wonder Plus Contribution Margin for Choco Delight Contribution Margin Frosty Desserts 3. What is the erosion cost? 4. Application.......The marketing team is analyzing a potential 20% price reduction in Choco Delight that will eliminate the drop in sales due to the launch of the new Double Fudge Wonder (or in other words sales stay the same at 100,000 units at the reduced sales price). What is the contribution margin for Choco Delight with the proposed price promotion (expect no change in product costs)? 5. Should they reduce the price to combat erosion