In the last year, Bakers Score's Donuts and Sweets has sold, on average, 1,200 ''Fudgie'' brownies per week. This week they introduced fat-free brownies and sold 220 at a price of $3.86 each. They noticed the cannibalization rate of fat-free brownies on Fudgie brownies was 40%. Bakers Score's sells their "Fudgie" brownies for $3.38, with a variable cost of $1.17. The new Fat-Free Brownies have a variable cost of $1.63.

What is the effective breakeven for the fat free brownies taking into consideration the impact of cannibalization and recalling that the fixed costs are $350?

Calculated variables:

canmarg = $1.35

ffmarg = $2.23

nwcontr = $2,948

wcontr = $2,652