Business, 04.08.2021 04:00 econsta3

Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich brownies would sell for $0.93 a piece and cost $0.85 to produce. The forecasted brownie volume is 223 comma 000 per year. Introduction of brownies, however, will reduce cookie sales by 192 comma 000 , with the following drops in sales per cookie: 111 comma 000 in chocolate chip, 38 comma 000 in snickerdoodle, 26 comma 000 in peanut butter, 7 comma 000 in lemon drop, and 10 comma 000 in cream-filled. What is the erosion cost of introducing the brownies? What is the net change in annual margin if Mississippi Mud brownies are added to the product line?

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Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich brownie...

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