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& P10-2 (similar to) EQuestion Help Erosion costs. Heavenly Cookie Company reports the following annual sales and costs for its current product line Butter Lemon

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& P10-2 (similar to) EQuestion Help Erosion costs. Heavenly Cookie Company reports the following annual sales and costs for its current product line Butter Lemon 43.000 $0 55 Drop 83,000 $0.48 Filled 98,000 0 54 $0 35 Volume 255,000 205.000 Cost $0.23 0 20 Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich brownies would sell for $0.95 a piece and cost $0.70 to produce. The forecasted brownie volume is 224,000 per year. Introduction of brownies, however, wil reduce cookie sales by 196,000, with the following drops in sales per cookie 112,000 in chocolate chip, 39,000 in snickerdoodle, 27,000 in peanut butter, 9,000 in lemon drop, and 9,000 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 ine? What is the erosion cost of introducing the brownies? S 77300 (Round to the nearest dolilar) What is the net change in annual margin if Mississippi Mud brownies are added to the product line? Round to the nearest doilar)

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