Question: Question 3 0 / 3 points Mimi's new Savory Stuffed muffin will compete with Mimi's established Banana Nut muffin. Contribution margin on the Banana

Question 3 0 / 3 points Mimi's new Savory Stuffed muffin will

Question 3 0 / 3 points Mimi's new Savory Stuffed muffin will compete with Mimi's established Banana Nut muffin. Contribution margin on the Banana Nut muffin is $6.92 per unit, while contribution margin on the new Savory Stuffed muffin will be $6.81 per unit. Mimi's expects a cannibalization rate of 41%. Launching the new Savory Stuffed muffin will involve fixed costs of $47,329. 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: 9,799.4 (11,913.3)

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