Mak Jenny plans to introduce a new line of pickled fruits, Buah Pickeled, estimated sales of 50,000 units per year. It will be sold for RM22.00 to its agents, and cost of production is RM12.50 each.
The company currently produces 2 other products which are Sambal Podeh and Beef Salai. Details of the current sales are as follows:
Unit Sales Selling Price Production cost
Sambal Podeh 120,000.00 RM 13.00 RM 9.20
Beef Salai 65,000.00 RM 21.00 RM 14.50
The introduction of Buah Pickled is estimated to cause a drop of 20% on the sales of existing products.
Net contribution margin per unit for Sambal Podeh is RM________.
Total Contribution margin for the current products are RM___________.
Estimated sales for Beef Salai after the introduction of the new product is __________ units.
Erosion cost for the existing products are estimated to be RM_____________.
Net contribution margin for Buah Pickled is RM_______.
Total contribution margin with the new product is RM__________.
