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# Yumminess has asked Jordon and Taylor to consider making Extra Attack Brownies and Nutty Attack Brownies, in addition to Chocolate Attack Brownies The selling price to Yumminess would

Yumminess has asked Jordon and Taylor to consider making Extra Attack Brownies and Nutty Attack Brownies, in addition to Chocolate Attack Brownies. The selling price to Yumminess would be \$12 and \$14.50 per tin, respectively, compared to the original \$10 for Chocolate Attach Brownies. In addition to the current fixed common cost of \$79,000, you have figured the additional costs to manufacture each new recipe. For 50,000 tins of Extra Attack Brownies, additional variable costs would be \$75,000. For 20,000 tins of Nutty Attack Brownies, additional variable costs would be \$100,000. Remember that the contribution margin for Chocolate Attack Brownies per tin is \$1.995.

What would be the incremental income/loss per tin for manufacturing Extra Attack Brownies?

What would be the incremental income/loss per tin for manufacturing Nutty Attack Brownies?

If Jordan and Taylor sold 100,000 tins of Chocolate Attach Brownies, 70,000 tines of Extra Attack Brownies, and 30,000 tins of Nutty Attack Brownies to Yumminess, what would be total sales in dollars?

If Jordan and Taylor sold 100,000 tins of Chocolate Attach Brownies, 70,000 tines of Extra Attack Brownies, and 30,000 tins of Nutty Attack Brownies to Yumminess, what would be the weighted-average contribution margin per tin.

 Additional variable cost per Extra Attack Brownies = 75000/50000= 1.5 Additional variable cost per Nutty Attack Brownies =100000/20000= 5 Additional selling price per Extra Attack Brownies = 12-10=2 Additional selling price Nutty Attack Brownies =14.5-10=4.5 Incremental income/loss per tin for manufacturing Extra Attack Brownies=2-1.5 =0.5 Incremental income/loss per tin for manufacturing Nutty Attack Brownies=4.5-5 =-0.5 Chocolate Attack Brownies Extra Attack Brownies Nutty Attack Brownies Units 100000 70000 30000 Selling price 10 12 14.5 Total Sales 1000000 840000 435000 Total sales = 1000000+840000+435000= 2275000 Weighted Average contribution Chocolate Attack Brownies Extra Attack Brownies Nutty Attack Brownies Weights 10 7 3 Contribution 1.995 this was given in the question. 2.495 ??? how is this calculated 1.495 ??? how is this calculated Weighted contribution 19.95 17.465 4.485 Average weighted contribution =(19.95+17.465+4.485)/20= 2.095

Aug 11 2020 View more View Less