Dunkin Donuts is planning to launch a new spinach donut, which will compete with Dunkin's...

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Accounting

Dunkin Donuts is planning to launch a new spinach donut, which will compete with Dunkin's own no-fun donut. Research suggests a cannibalization rate of 31% for the spinach donut. Dunkin earns a contribution margin of $1.01 on each no-fun donut and will earn $1.24 in contribution margin on each spinach donut sold. Calculate weighted contribution margin for the new spinach donut. Rounding: penny.

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