Rosey Inc. Contribution Margin Rosey Inc. current products comprises of the followings: Alpha: The selling price is
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Rosey Inc. Contribution Margin
Rosey Inc. current products comprises of the followings:
Alpha: The selling price is RM per unit, with production cost of RM per unit, and sales volume on average is units per year.
Delta: The selling price is RM per unit, with production cost of of the selling price per unit, and sales volume on average is units per year.
The company is planning to introduce another product, Theta, which is expected to have an average sale of units per year. The selling price will be at RM per unit, and production cost of RM per unit. The introduction of the new product will decrease sales of Alpha by and to Delta of
Total Sales Revenues of the existing products are RM
Total Net Contribution Margin of the company is RM
Percentage of contribution margin per unit for Alpha is
With the introduction of the new product, Delta's sales will be reduced to units.
Total Sales Revenues with the new product are RM
Total Net Contribution Margin with the new products is RM
Total Erosion Cost with the introduction of the new products is RM
Total Erosion Cost with the introduction of the new products is RM
Total Erosion Cost with the introduction of the new products is RM
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