Ch 10 Advanced Problem 2 Chapter 13 Problem 18 Chapter 12 Problem 17 Ch 11 Advanced problem 1 ADVANCED PROBLEMS FOR SPREADSHEET APPLICATION These problems are available in MyFinanceLab .
1 . Erosion costs . Ice Cream City plans to introduce a new flavor , wild berry , to its current set of five flavors , which include vanilla , French vanilla , strawberry , chocolate , and mint chocolate . The new sales of wild berry are projected as follows :
The expected sales will come from both new customers and current customers who switch flavors . The current projected sales for the existing flavors ( assuming no introduction of the new flavor ) are
Projected Sales
However , if the company introduces wild berry , it will cut into the sales of the original flavors based on the following estimates :
Percentage of Sales Erosion Here are the revenue and cost per unit of ice cream for Ice Cream City : Vanilla : current revenue of $ 3.05 per unit and cost of $ 1.22 per unit