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Assume a company expects to seli 6 million packages of Pop-Tarts Gone Nuttyl in the first year after introduction but expects that 50 percent of

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Assume a company expects to seli 6 million packages of Pop-Tarts Gone Nuttyl in the first year after introduction but expects that 50 percent of those sales will come from buyers who would normally purchase existing Pop-Tart fiwors (that is, cannibalized sales). The price for a package of Pop-Tarts Gone Nuttyl is $1.30 and its variable cost is $0.65, when the price for a package of original Pop-Tart is $1.10 with variable cost of $0.30, Assuming the sales of regular Pop-Tarts are normally 300 milion packages per year and that the company will incur an increase in fixed costs of $700,000 during the first year to launch Gone Nuttyl will the new product be profitable for the. company? Determine the unit contributions and the loss for every package cannibalized from the original product. (Round to the nearest cent.)

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