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Blanket Core's new weighted blanket has a price of $50 and COGS of $20. The company expects to sell 8,000 blankets next year. However, this
Blanket Core's new weighted blanket has a price of $50 and COGS of $20. The company expects to sell 8,000 blankets next year. However, this product is going to cause cannibalization from their previous hooded blanket which has a price of $30 and COGS of $10 per unit. They expect 20% of unit sales will come from customers who would have bought the old version. Also, the warehouse space could have been used for other products that would have provided value of $100,000. What is the EBIT next year?
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