EasyFind, Inc. sells StraightShot golf balls for $22 per dozen, with a variable manufacturing cost of $14 per dozen. Eas

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Easyfind Inc Sells Straightshot Golf Balls For 22 Per Dozen With A Variable Manufacturing Cost Of 14 Per Dozen Eas 1 (44.21 KiB) Viewed 22 times

EasyFind, Inc. sells StraightShot golf balls for $22 per dozen, with a variable manufacturing cost of $14 per dozen. EasyFind is planning to introduce a lower priced ball, Duffer's Delite, that will sell for $12 per dozen with a variable manufacturing cost of $5 per dozen. The firm currently sells 50,900 StraightShot units per year and expects to sell 21,300 units of the new Duffer's Delight golf ball if it is introduced (1 unit = 12 golf balls packaged together). Management projects the fixed costs for launching Duffer's Delight golf balls to be $9,030 Another way to consider the financial impact of a product launch that may steal sales from an existing product is to include the loss due to cannibalization as a variable cost. That is, if a customer purchases Duffer's Delite ball instead of Straight Shot, the company loses the margin of Straight Shot that would have been purchased. Using the previously calculated cannibalization rate, calculate Duffer's Delite per unit contribution margin including cannibalization as a variable cost. PS1 0.00 dollars and cents 2 3 4 SUBMIT ANSWER EXIT PRACTICE CALCULATED VARIABLES canrate=0.324 (32.4%) ycontr= $407,200 ucontr= $8.00