Heavenly Cookie Company has the following annual sales and costs for its current product line: Chocolate...
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Heavenly Cookie Company has the following annual sales and costs for its current product line: Chocolate Chip Snicker- doodle Peanut Butter Lemon Cream- Drop Filled Volume 240,000 180,000 130,000 78,000 92,000 Price $0.49 $0.49 $0.49 $0.49 $0.59 Cost $0.19 $0.17 $0.15 $0.22 $0.31 Heavenly is thinking of adding Mississippi mud brownies to the product line. The ultra-rich brownies would sell for $0.99 a piece and cost $0.81 to produce. The forecasted brownie volume is 250,000 per year. Introduction of brownies, however, will reduce cookie sales by 250,000 with the following drop in sales per cookie: 130,000 in chocolate chip, 60,000 in snickerdoodle, 40,000 in peanut butter, 10,000 in lemon drop, and 10,000 in cream-filled. What is the erosion cost of introducing the brownies? 76,760 74,980 79,951 64,473 77,300 Question 2 (1 point) E Listen What is the net change in annual profit if Mississippi mud brownies are added to the product line? -29,438 -32,300 -30,650 -35,438 -28,433 Heavenly Cookie Company has the following annual sales and costs for its current product line: Chocolate Chip Snicker- doodle Peanut Butter Lemon Cream- Drop Filled Volume 240,000 180,000 130,000 78,000 92,000 Price $0.49 $0.49 $0.49 $0.49 $0.59 Cost $0.19 $0.17 $0.15 $0.22 $0.31 Heavenly is thinking of adding Mississippi mud brownies to the product line. The ultra-rich brownies would sell for $0.99 a piece and cost $0.81 to produce. The forecasted brownie volume is 250,000 per year. Introduction of brownies, however, will reduce cookie sales by 250,000 with the following drop in sales per cookie: 130,000 in chocolate chip, 60,000 in snickerdoodle, 40,000 in peanut butter, 10,000 in lemon drop, and 10,000 in cream-filled. What is the erosion cost of introducing the brownies? 76,760 74,980 79,951 64,473 77,300 Question 2 (1 point) E Listen What is the net change in annual profit if Mississippi mud brownies are added to the product line? -29,438 -32,300 -30,650 -35,438 -28,433
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