Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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? line?

Should the brownies be adopted into the product? line? ?

w.zealko rosion costs. Heavenly Cookie Company reports the following annual sales and costs for its cument product line: Peanut doodle Chocolate Snicker- Cream- Volumee 255.000 208,000 141,000 83,000 94,000 Cost 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 yea ntroduction of brownies, however, will reduce cookie sales by 191,000, with the following drops in sales per cookie: 00 in chocolate chip, 37,000 in snickerdoodle, 26,000 in peanut butter, 7,000 in lemon drop, and 10,000 in cream-filled. What is the erosion cost of introducing the brownies What is the net change in annual margin if Mississippi Mud brownies a added to the product line? re

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance

Authors: Keith Pilbeam

4th Edition

0230362893, 978-0230362895

More Books

Students also viewed these Finance questions

Question

=+Construct a data- and research-driven SWOT analysis

Answered: 1 week ago

Question

=+Who are our customers?

Answered: 1 week ago

Question

=+What are our goals presently?

Answered: 1 week ago