What would be the incremental income

Reference no: EM132217901

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. Remember that the contribution margin for Chocolate Attack Brownies per tin is $1.995.

Answer questions 1 and 2 as a sell now or process further scenario. Question 3 is sales mix with a weighted-average contribution margin.

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

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

3. 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.

Reference no: EM132217901

Questions Cloud

What you believe to be reflective of a functional : Research and read one HR related journal article or an article from a publication in the field of HRM. The article you select should represent what you believe.

Prepare a report to the board outlining the principles : Prepare a report to the board outlining the principles involved in accounting for research and development, and showing what accounting entries need

Determine why change is so difficult for organizations : Determine why change is so difficult for organizations. Propose ways that human resource (HR) specialists can assist in making change easier.

What entry should krautwortz make on december : Assume that Krautwwortz uses the indirect method when recording inventory at market. What entry should Krautwortz make on December 31, 2006

What would be the incremental income : The selling price to Yumminess would be $12 and $14.50 per tin, What would be the incremental income/loss per tin for manufacturing Extra Attack Brownies

Discuss the process of data mining : Discuss the process of data mining. What are the advantages of data mining?

Main elements that comprise feedback control : What are the components of e-Business framework? Explain. Describe the main elements that comprise feedback control.

What are different requirements of multimedia : What factors determine a ‘winner-takes-all’ market? What are different requirements of multimedia?

Compute the gross profit rate and the profit margin : Marin Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. Compute the gross profit rate and the profit margin

User Account

All Pages