Home / Questions / Yumminess has asked Jordon and Taylor to consider making Extra Attack Brownies and Nutty A...
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 weightedaverage 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 = 1210=2  
Additional selling price Nutty Attack Brownies =14.510=4.5  
Incremental income/loss per tin for manufacturing Extra Attack Brownies=21.5 =0.5  
Incremental income/loss per tin for manufacturing Nutty Attack Brownies=4.55 =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 
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