In the last year, Bakers Score's Donuts and Sweets has sold, on average, 1,351 ''Fudgie'' brownies per week. This week they introduced fat-free brownies and sold 255 at a price of $4 each. They noticed the cannibalization rate of fat-free brownies on Fudgie brownies was 46%. Bakers Score's sells their "Fudgie" brownies for $3, with a variable cost of $1.2. The new Fat-Free Brownies have a variable cost of $2.

Assuming fixed costs for Fat-Free brownies are $350, how many of this new product will they have to sell to break even before cannibalization is taken into consideration?

Answer rating: 100% (QA)

To calculate the breakeven quantity of the new product FatFree brownies before considering cannibali... View the full answer