a. Incremental sales with introducing new pizza = $ 15 million - ( 15million * 33%) = 10.05 million
b. Incremental sales = 15 million - ( 15million * 33% *(1-43%)) = 12.18 million
Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza...
Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $ 25 million per year. While many of these sales will be to new customers, Pisa Pizza estimates that 50 % will come from customers who switch to the new, healthier pizza instead of buying the original version. a. Assume customers will...
Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $16 million per year. While many of these sales will be to new customers, Pisa Pizza estimates that 36% will come from customers who switch to the new, healthier pizza instead of buying the original version. a. Assume customers will spend the...
10) Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $21 million per year. While many of these sales will be to new customers, Pisa Pizza estimates that 45% will come from customers who switch to the new, healthier pizza instead of buying the original version.?? a. Assume customers will spend...
Next Question Homework: Chapter 9 Homework score: 0 of 1 pt 2 of 11 (0 complete) » 9-4 (similar to) apter 9 Homerom Save HW Score: 0%, 0 of 11 pts Question Help Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $22 million per year. While many of these sales...
Captain's Cereal is considering introducing a variation of its current breakfast cereal, Crunch Stuff. The new cereal will be similar to the old, with the exception that it will contain sugar-coated marshmallows shaped in the form of stars. The new cereal will be called Crunch Stuff n' Stars. It is estimated that the sales for the new cereal will be $25 million; however, 60 percent of those sales will draw from current Crunch Stuff customers who will switch to Crunch...
(Determining relevant cash flows) Captain's Cereal is considering introducing a variation of its current breakfast cereal, Crunch Stuff. This new cereal will be similar to the old, with the exception that it will contain sugar-coated marshmallows shaped in the form of stars. The new cereal will be called Crunch Stuff n' Stars. It is estimated that the sales for the new cereal will be $22 million; however, 35 percent of those sales will draw from former Crunch Stuff customers...
Delta Sonic, a chain of full service automotive detailers, is considering introducing a new 15-minute car wash and wax service at one of its locations. The firm expects that sales from the new 15-minute service will be $175,000 per year. Delta Sonic currently offers a 1-hour wash/wax/detail service with annual sales of $90,000. While many of the 15-minute sales will be to new customers, Delta Sonic estimates that 40 % of their 1-hour customers will switch and use the 15-minute...
(Determining relevant cash flows) Fruity Stones is considering introducing a variation of its current breakfast cereal, Jolt n' Stones. This new cereal will be similar to the old with the exception that it will contain more sugar in the form of small pebbles. The new cereal will be called Stones n' Stuff. It is estimated that the sales for the new cereal will be $118 million; however, 35 percent of those sales will be from former Fruity Stones customers who...
Food For Less (FFL), a grocery store, is considering offering one-hour photo developing in their store. The firm expects that sales from the new one-hour machine will be 175,000 per year. FFL currently offers overnight film processing with annual sales of $100,000. While many of the one-hour photo sales will be to new customers, FFL estimates that 60% of their current overnight photo customers will switch and use the one-hour service. The level of incremental sales associated with introducing the...
FFL, a grocery store is considering offering one hour photo in their store. the first expecta that sales from the new one hour machine will be $150,000 per year. FFL currently offers overnight photo with annual sales of $90,000. while many of the one hour photo sales will be to new customers, they estimate that 50% of their current overnight customers will switch and use the one hour service. the level of incremental sales associated with introducing the new one...