Ana Coleman, Brand Manager for Universal Sporting Equipment (USE), Inc., must decide whether to mode a mid-priced version of the firm's Endeavor line of high-performance recreational bicycles next year. The new model (E-330) has a unit variable cost of $160, and will be sold to retailers at a price of $400. Projections made by the product development team indicate that, if introduced E-330 will achieve a sales volume of 60,000 units next year, its first year of commercialization. Thirty percent (30%) of the E-330's first year's sales volume is expected to come from competitors products and market growth, and the remaining seventy percent (70%) is expected to come from two models currently sold by USE. Sixty percent of the cannibalized volume will come from the higher-priced E-660 model, which has a unit variable cost of $240 and is sold to retailers for $690. The remaining forty percent of cannibalized volume will come from the economy-priced E-220 model, which is sold to retailers for $250 and has a unit variable cost of $110. If E-330 is not introduced, sales of the existing models next year are expected to be 0,000 units for E-660 and 80,000 units for E-220. The fixed costs of launching E-330 have been forecasted to be $1,000,000. Answer the following, showing calculations. a) What is the cannibalization rate? (1 pt) b) How many units of E-220 will be cannibalized? (3 pts) c) How many units of E-660 will be cannibalized? (3 pts) d) How many incremental units of E-330 will be sold? (3 pt) e) Should Ms. Coleman add the E-330 model to the product line? Why? (10 pts)