Mimi's new Savory Stuffed muffin will compete with Mimi's established Banana Nut muffin. Contribution margin on the Banana Nut muffin is $6.88 per unit, while contribution margin on the new Savory Stuffed muffin will be $7.28 per unit. Mimi's expects a cannibalization rate of 43%. Launching the new Savory Stuffed muffin will involve fixed costs of $48,955. How many units of the new Savory Stuffed muffin must Mimi's sell in order to break even on the launch--accounting for the cannibalization? (Rounding: tenth of a muffin.)

Answer rating: 100% (QA)

To calculate the number of units of the new Savory Stuffed muffin that Mimis must sell in order to b... View the full answer