Annie\'s Homemade makes the brownies it adds to vanilla fudge brownie ice cream. The company is deciding whether it should sell brownies as a standalone product or always cut them into smaller pieces and add them to the vanilla fudge brownie ice cream. The cost to make threeounce brownies is $ Each threeounce brownie could be sold for $ It costs $ to cut a threeounce brownie into pieces and add it to ice cream. A sixounce serving of vanilla fudge brownie uses one ounce of brownies plus $ of other ingredients and labor while selling for $

REquired

What total revenue does Annie\'s earn when it adds a threeounce brownie to servings of vanilla fudge brownie ice cream?

What is the sales value of a threeounce brownie at the splitoff point?What is the incremental revenue from further processing a threeounce brownie?

What is Annie\'s total cost of further processing if it chooses to include each threeounce brownie in servings of vanilla fudge brownie ice cream?

What is the financial advantage disadvantage of further processing a threeounce brownie into servings of vanilla fudge brownie ice cream?

Answer rating: 100% (QA)

To answer your questions lets break down the information provided Given Cost to make one 3ounce brownie 400 Selling price of one 3ounce brownie 200 Cost to cut a 3ounce brownie into pieces and add it ... View the full answer