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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
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? reStep by Step Solution
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