Question: Miller Cereals is a small milling company that makes a

Miller Cereals is a small milling company that makes a single brand of cereal. Recently, a business school intern recommended that the company introduce a second cereal in order to "diversify the product portfolio." Currently, the company shows an operating profit that is 20 percent of safes. With the single product, other costs were twice the cost of rent. The intern estimated that the incremental profit of the new cereal would only be 2.5 per cent of the incremental revenue, but it would still add to total profit. On his last day, the intern told Miller's marketing manager that has analyses was on the company laptop in a spreadsheet with a file name, NewProduct.xlsx. The intern then left for a 12-month walkabout in the outback of Australia and cannot be reached. When the marketing manager opened the file, it was corrupted and could not be opened. She then found an early (incomplete) copy on the company's backup server. The incomplete spreadsheet is shown on the following page. The marketing manager then called a cost management accountant in the controller's office and asked for help in reconstructing the analysis.

As the management accountant, fill in the blankcells.
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  • CreatedDecember 18, 2013
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