Yumminess has asked Jordon and Taylor to consider making ExtraAttack Brownies and Nutty Attack Brownies, in addition to ChocolateAttack Brownies. The selling price to Yumminess would be $12 and$14.50 per tin, respectively, compared to the original $10 forChocolate Attach Brownies. In addition to the current fixed commoncost of $79,000, you have figured the additional costs tomanufacture each new recipe. For 50,000 tins of Extra AttackBrownies, additional variable costs would be $75,000. For 20,000tins of Nutty Attack Brownies, additional variable costs would be$100,000. Remember that the contribution margin for ChocolateAttack Brownies per tin is $1.995.
Answer questions 1 and 2 as a sell now or processfurther scenario. Question 3 is sales mix with a weighted-averagecontribution margin.
1. What would be the incremental income/loss per tin formanufacturing Extra Attack Brownies? (If a net loss, use “( )” or“-“ in your answer.)
2. What would be the incremental income/loss per tin formanufacturing Nutty Attack Brownies? (If a net loss, use “( )” or“-“ in your answer.)
3. If Jordan and Taylor sold 100,000 tins of ChocolateAttach Brownies, 70,000 tines of Extra Attack Brownies, and 30,000tins of Nutty Attack Brownies to Yumminess, what would be theweighted-average contribution margin per tin.
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