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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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