2. Assume the company expects to sell 5 million bottles of Coca-Cola Plus in the first year after introduction but that 60 percent of those sales will come from buyers who would normally purchase Diet Coke (that is, cannibalized sales). Assuming the sales of Diet Coke are normally 300 million bottles per year and that the company will incur an increase in fixed costs of $500,000 during the first year to launch Coca-Cola Plus, will the new product be profitable for the company? Refer to the Financial Analysis of Marketing Tactics: Extend the Product Line section in Appendix 2: Marketing by the Numbers for an explanation regarding how to conduct this analysis. (AACSB: Communication;

Analytical Reasoning)