1. The local shampoo market is dominated by two brands: Clean Hair, which owns 57% of the market, and Sassy, which owns the remainder. A new brand, All-Over Shampoo, manufactured by the same makers of Sassy, is attempting to break into the shampoo market with an all-natural shampoo that they claim will strengthen hair as it is washed. The local shampoo market volume is 2,432 bottles per month. All-Over Natural Shampoo sells 342 bottles in their first month. The total market for shampoo is mature and no growth is expected to result from All-Over's entry. Variable costs for All-Over Shampoo are estimated at $2.52 per bottle, with a selling price of $4.53.

What is All-Over Shampoo's market share in the first month of sales?

2. The local shampoo market is dominated by two brands: Clean Hair, which owns 53% of the market, and Sassy, which owns the remainder. A new brand, All-Over Shampoo, manufactured by the same makers of Sassy, is attempting to break into the shampoo market with an all-natural shampoo that they claim will strengthen hair as it is washed. The local shampoo market volume is 2,803 bottles per month. All-Over Natural Shampoo sells 349 bottles in their first month. The total market for shampoo is mature and no growth is expected to result from All-Over's entry. Variable costs for All-Over Shampoo are estimated at $2.71 per bottle, with a selling price of $4.72.

What is the cannibalization rate (the percentage of new product sales coming from an existing product) of All-Over Natural Shampoo on the Sassy brand?

3. EasyFind, Inc. sells StraightShot golf balls for $24 per dozen, with a variable manufacturing cost of $9 per dozen. EasyFind is planning to introduce a lower priced ball, Duffer's Delite, that will sell for $15 per dozen with a variable manufacturing cost of $3 per dozen. The firm currently sells 45,215 StraightShot units per year and expects to sell 22,375 units of the new Duffer's Delight golf ball if it is introduced (1 unit = 12 golf balls packaged together). Management projects the fixed costs for launching Duffer's Delight golf balls to be $6,876.

If StraightShot sales drop to 44,000 units sold after the launch of Duffer's Delite, what is the cannibalization rate [the percentage of new product sales coming from an existing product] of Duffer's Delite golf balls on StraightShot golf balls?

4. In the last year, Bakers Score's Donuts and Sweets has sold, on average, 1,094 ''Fudgie'' brownies per week. This week they introduced fat-free brownies and sold 259 at a price of $3.63 each. They noticed the cannibalization rate of fat-free brownies on Fudgie brownies was 41%. Bakers Score's sells their "Fudgie" brownies for $3, with a variable cost of $1. The new Fat-Free Brownies have a variable cost of $2.

What was the percentage sales decrease that Fudgie brownies incurred?