Construct a ProForma Income statement illustrating the Net Profit for positioning Clean Edge under both the Niche and Mainstream strategies. Be sure to incorporate the financial impact of cannibalization

Given these financial results (from 3a.), under which positioning (niche or mainstream) would you suggest launching Clean Edge?

This needs to be completed:

Exhibit T: Financial Forecasts: Alternative Positioning Scenarios for Clean Edge Mainstream Niche Positioning Positioning Planned capacity Razor unit volume (millions of units) Year 1 1.0 3.3 Year 2 1.5 4.0 Planned capacity Cartridge* unit volume (millions of units Year 1 4.0 9.9 Year 2 10.0 21.9 Capacity costs (8 in Millions) Year 1 $ 0.61 $ 1.71 Year 2 $ (137 $ 2.45 Razor: Production per unit cost $ 5.00 $ 4.1'4 Razor: Manufacturer price $ 9.09 $ 71.83 Razor: Suggested price $ 12.99 $ 11.19 Cartridge*: Average Production unit cost $ 2.43 $ 2.24 Cartridge*: Average Manufacturer price $ 7.35 $ 6.22 Cartridge*: Average Suggested price $ 10.50 $ 8.89 Advertising ($ in Millions) Year 1 $ T $ 19 Year 2 $ T $ 17 Consumer promotions (31 in Millions) Year 1 $ 6 $ 1? Year 2 $ 6 $ 14 Trade promotions ($ in Millions) Year 1 $ 2 $ 6 Year 2 $ 3 $ 8 *Cartridge unit assumes average 4-count rell package Income Statement: Prot and Loss Forecasts for Clean Edge Under Niche and Mainstream Scenarios ($ in Millions) Niche Mainstream Source of data Year 1 Year 2 Year 1 Year 2 1 Unit sales - Razors Exhibit 7 2 Dollar sales - Razors (1) * manuf price (Exhibit 7) 3 Unit sales - Cartridges Exhibit 7 4 Dollar sales - Cartridges (3) * manuf price (Exhibit 7) 5 Total dollar sales 6 Production costs Razors (1) * prod cost (Exhibit 7) 7' Production costs Cartridges (3) * prod cost (Exhibit 7) 8 Capacity costs Capacity costs from Exhibit 7 9 Advertising and Promotion Exhibit 7 10 Total costs 11 Operating Prot 12 Prots as % of sales 13 Cost of cannibalization - Razors (See note below) 14 Cost of cannibalization - Cartridges (See note below) 15 Net Prot aer cannibalization (11) - (13) - (14)