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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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