Yumminess has asked Jordon and Taylor to consider making Extra Attack Brownies a
ID: 2448492 • Letter: Y
Question
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.
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.
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 total net income/loss?
Explanation / Answer
Extra Attak Nutty Attak Total Addition Selling Price $ 2.00 $ 4.50 Additional Sales Units 50000 20000 Sales $ 100,000.00 $ 90,000.00 $ 190,000.00 Less: Cost Additional Variable cost $ 75,000.00 $ 100,000.00 $ 175,000.00 Additional profit or loss $ 25,000.00 $ -10,000.00 $ 15,000.00 Per unit additional profit or loss $ 0.50 $ -0.50 Extra Attak Nutty Attak Chocolate Total Sales units 70000 30000 100000 Sales Price $ 12.00 $ 14.50 $ 10.00 Sales $ 840,000.00 $ 435,000.00 $ 1,000,000.00 $ 2,275,000.00 Can not answer last two, because the question do not have Variable cost Details for Chocolate attak.
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