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Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich brownies would sell for $0.92 a piece and cost $0.80 to

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Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich brownies would sell for $0.92 a piece and cost $0.80 to produce. The forecasted brownie volume is 221,000 per year. Introduction of brownies, however, will reduce cookie sales by 188,000, with the following drops in sales per cookie: 111,000 in chocolate chip, 35,000 in snickerdoodle, 25,000 in peanut butter, 7,000 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

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