which flavour would be the most profitable on a per unit basis?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Drew owns a candy store and is constantly trying new gummy bear flavours. They like to run tests to analyze the results before launching new products. Currently, costs are
20% of revenues. Unfortunately, they only have the capacity to introduce one flavour. Using the table below, which flavour would be the most profitable on a per unit basis?
Flavour
Pistachio Durian
Red Curry
Kimchi
Peppercorn
Product revenue, relative to current product mix
-0.25%
+3%
-2%
+1%
Product costs, relative to current product mix
-8%
+8%
-20%
-1.5%
Transcribed Image Text:Drew owns a candy store and is constantly trying new gummy bear flavours. They like to run tests to analyze the results before launching new products. Currently, costs are 20% of revenues. Unfortunately, they only have the capacity to introduce one flavour. Using the table below, which flavour would be the most profitable on a per unit basis? Flavour Pistachio Durian Red Curry Kimchi Peppercorn Product revenue, relative to current product mix -0.25% +3% -2% +1% Product costs, relative to current product mix -8% +8% -20% -1.5%
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