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