Question: Drew owns a candy store and is constantly trying new gummy bear flavours. They like to run tests to analyze the results before launching new

Drew owns a candy store and is constantly trying new gummy bear flavours. They like to run tests to analyze the results before launching new products. Currently, costs are 20% of revenues. Unfortunately, they only have the capacity to introduce one flavour. Using the table below, which flavour would be the most profitable on a per unit basis?

Flavour Product revenue, relative to current product mix Product costs, relative to current product mix

Pistachio Durian

-0.25%

-8%

Red Curry

+3%

+8%

Kimchi

-2%

-20%

Peppercorn

+1%

-1.5%

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