Jodies Organic Therapy (JOT) sells indulgent packs online. These are gift packs containing soap, shampoo, conditioner and a wheat bag. All contents are organic and ethically sourced from local providers. The packs are sought after as presents for birthdays, mothers and fathers days, Christmas, and bridal showers. JOT purchases all gift pack contents and packaging from local providers. JOT charges customers $70 for each pack; it costs JOT $25, and it costs the local providers $15. JOT is seeking to further differentiate its offerings to include a wider range of products in its gift packs. They are considering adding a scented soy candle, relaxation essential oil, and vanilla bean hand cream. They have undertaken an online survey and have determined that there is some demand for a bigger indulgent pack. They have received information from their local providers on their costs.

Required:

Assume you are Jodies Organic Therapys accountant and they have come to you to assist them with strategic analysis. Assume that neither JOT nor their local providers wish to reduce their existing contribution margins. What additional products (if any) do you recommend should be included in the indulgent pack? (Show your calculations.)

What other information would you require for better analysis and decision-making?

Additional amount Jodies Additional cost of product toOrganic Therapy customers are Product local providers prepared to pay Scented soy candle Relaxation essential oil Vanilla bean hand cream $4 $12 $7 $16 $65 S35 Additional amount Jodies Additional cost of product toOrganic Therapy customers are Product local providers prepared to pay Scented soy candle Relaxation essential oil Vanilla bean hand cream $4 $12 $7 $16 $65 S35