Question
n the last year, Bakers Score's Donuts and Sweets has sold, on average, 1,300 ''Fudgie'' brownies per week. This week they introduced fat-free brownies and
n the last year, Bakers Score's Donuts and Sweets has sold, on average, 1,300 ''Fudgie'' brownies per week. This week they introduced fat-free brownies and sold 220 at a price of $4.25 each. They noticed the cannibalization rate of fat-free brownies on Fudgie brownies was 45%. Bakers Score's sells their "Fudgie" brownies for $3.32, with a variable cost of $1.20. The new Fat-Free Brownies have a variable cost of $1.73.
What is the unit margin ($) for Fat-Free Brownies before cannibalization is taken into consideration?
CALCULATED VARIABLES: nwcontr = $3,101 wcontr = $2,756
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