subject
Business, 20.03.2020 05:39 Chad5978

Kellogg's, maker of Pop-Tarts, recently introduced Pop-Tarts Gone Nutty! The new product includes flavors such as peanut butter and chocolate peanut butter. Although the new Gone Nutty! product will reap a higher wholesale price for the company ($1.25 per eight-count package of the new product versus $1.00 per package for the original product), it also comes with higher variable costs ($0.60 per eight-count package for the new product versus $0.25 per eight-count package for the original product). Assume the company expects to sell 6 million packages of Pop-Tarts Gone Nutty! in the first year after introduction but expects that 75 percent of those sales will come from buyers who would normally purchase existing Pop-Tart flavors (that is, cannibalized sales). Assuming the sales of regular Pop-Tarts are normally 290 million packages per year and that the company will incur an increase in fixed costs of $610 comma 000 during the first year to launch Gone Nutty!, will the new product be profitable for the company? Determine the unit contributions and the loss for every package cannibalized from the original product. (Round to the nearest cent.) Original Pop-Tarts Pop-Tarts Gone Nutty! Loss for every package cannibalized Unit contribution $ nothing $ nothing $ nothing

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 10:30
Which maxim is being neglected in the following conversation? eli: how did you do at the track meet? caleb: i came in second place! eli: congratulations! what was your time? caleb: six minutes, four seconds. the guy who won only beat me by three seconds. eli: really? katie said the winning time was under 6 minutes. caleb: oh, well, he might have beat me by five seconds. a)maxim of quantity b)maxim of quality c)maxim of relevance d)maxim of manner
Answers: 1
question
Business, 22.06.2019 11:40
During 2016, nike inc., reported net income of $3,760 million. the company declared dividends of $1,022 million. the closing entry for dividends would include which of the following? select one: a. credit cash for $1,022 million b. credit dividends for $1,022 million c. debit net income for $1,022 million d. credit retained earnings for $1,022 million e. debit dividends for $1,022 million
Answers: 1
question
Business, 22.06.2019 13:50
Read the following paragraph, and choose the best revision for one of its sentences.dr. blake is retiring at the end of the month. there will be an unoccupied office upon his departure, and it is big in size. because every other office is occupied, we should convert dr. blake’s office into a lounge. it is absolutely essential that this issue is discussed at the next staff meeting. (a) because every other office is occupied, it’s recommended that we should convert dr. blake’s office into a lounge. (b) because every other office is filled, we should convert dr. blake’s office into a lounge.
Answers: 2
question
Business, 22.06.2019 21:30
An allergy products superstore buys 6000 of their most popular model of air filters each year. the price of the air filters is $18. the cost of ordering and receiving shipments is $12 per order. accounting estimates annual carrying costs are 20% of the price. the supplier lead time is 2 days. the store operates 240 days per year. each order is received from the supplier in a single delivery. there are no quantity discounts. what is the store’s minimum total annual cost of placing orders & carrying inventory?
Answers: 1
You know the right answer?
Kellogg's, maker of Pop-Tarts, recently introduced Pop-Tarts Gone Nutty! The new product includes fl...
Questions
question
Mathematics, 08.02.2022 14:00
question
Mathematics, 08.02.2022 14:00
Questions on the website: 13722361