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The company expects to sell 50,000 cases of Crunchies Zest in year one. Of that amount, it is estimated that 20,000 cases will be diverted
The company expects to sell 50,000 cases of Crunchies Zest in year one. Of that amount, it is estimated that 20,000 cases will be diverted from Crunchies Lite, of which the company had expected to sell 70,000 cases. A. Calculate the total contribution margin for Crunchies Lite, assuming that Crunchies Zesty was not introduced. B. Calculate the overall contribution Margin for Crunchies Lite, Assuming that the new brand is introduced as planned. C. Calculate the total contribution margin for Crunchies Zesty, D. Calculate the change in Crunchies' total contribution margin due to the introduction of Crunchies Zesty. E. Should Crunchies go ahead with the introduction? Why or why not? Use the information from the prior question to answer this question. The introduction of Crunchies Zesty will necessitate a new fixed cost of $75,000 A. Calculate the weighted contribution margin for Crunchies Zesty B. Calculate the breakeven sales volume for Crunchies Zesty necessary to justify the new fixed cost. C. How many cases of Crunchies Lite will be sold at the breakeven volume of Crunchies Zesty? Q4. Crunchies is introducing Crunchies zesty. Crunchies Zesty will cannibalize the company's existing brand - Crunchies Lite. Crunchies Lite Crunchies Zesty Unit Selling Price (case) $9.95 $11.25 Unit Variable Costs (case) $6,50 $7.50
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