In the last year, Bakers Score's Donuts and Sweets has sold, on average, 1,000 ''Fudgie'' brownies per week. This week they introduced fat-free brownies and sold 200 at a price of $3.84 each. They noticed the cannibalization rate of fat-free brownies on Fudgie brownies was 48%. Bakers Score's sells their "Fudgie" brownies for $3.28, with a variable cost of $1.38. The new Fat-Free Brownies have a variable cost of $1.66.

What is the effective unit margin ($) including the impact of cannibalization for Fat-Free Brownies, assuming the original estimate of cannibalization.

what has already been solved for:

What is the weekly contribution ($) for Bakers Score's "Fudgie" brownie before the introduction of their Fat-Free Brownies?

$1,900

What was the percentage sales decrease that Fudgie brownies incurred?

9.6%

What is the new total weekly contribution ($) for Bakers Score's Donuts after the launch of the Fat-Free variety?

$2,154

In week 2, "Fudgie" brownie sales dropped to 850 units sold, while sales for Fat-Free brownies remained constant. If all of the decrease in Fudgie sales is due to the fat-free product, what would be the new cannibalization rate?

75%

Assuming fixed costs for Fat-Free brownies are $350, how many of this new product will they have to sell to break even before cannibalization is taken into consideration?

161

What is the unit margin ($) for Fat-Free Brownies before cannibalization is taken into consideration?

$2.18

In the last year, Bakers Score's Donuts and Sweets has sold, on average, 1,000 "Fudgie" brownies per week. This week they introduced fat-free brownies and sold 200 at a price of $3.84 each. They noticed the cannibalization rate of fat-free brownies on Fudge brownies was 48%. Bakers Scores sells their "Fudgie" brownies for $3.28, with a variable cost of $1.38. The new Fat-Free Brownies have a variable cost of $1.66. What is the effective unit margin (S) including the impact of cannibalization for Fat-Free Brownies, assuming the original estimate of cannibalization. 0.00 dollars Submit Answer Exit 1 23 4 56 7