Could someone please help me understand and resolve this case? Thank you!

CASE 15 Phelps Toy Company The Phelps Toy Company was considering the advisability of adding a new product to its line. Ike Barnes was in charge Since the founding of the company in 1988, he had seen sales grow from S150,000 a ycar to almost S40 million in 2006. Although the A market survey by Ikes Barnes indicated that the Topps Chewing Gum Compan industry. The company actually had a public distribution of its common stock in 2001. Other major sellers in 2007 were Upper Deck, Fleer, Leaf, and Donruss. All produce milons of baseball cards on an annual basis. The cards can be purchased in packs of 15-20 cards for S1.00-S3.00 at drug or convenience stores or in boxes of 700-800 cards for $20 and up. These larger quantities of cards were usually purchased from sport card specialty stores or at baseba card conventions (over 1,000 such conventions throughout the country took place a year). y was the largest competitor in the ncw firm had initially started out manufacturing toy trucks, it had diversified into such items as puzzles, stuffed animals, wall posters, miniature trains, and board games. In 2000, it developed the third most popular board game for the year, based on a popular television quiz show, but the show was canceled two years later. Nevertheless, the fim learned its lesson well and continued to produce board games related not only to quiz shows but to situation comedies and In doing his analysis, Mr. Barnes discovered that the appeal of bascball cards was not only in opening a wrapper and finding a favorite player enclosed but also that many baseball cards initially purchased for pennies had gained substantially in value. Once a player achieved star status, his rookie card (first issued) might greatly increase in worth. even a popular detective series However, by January of 2007, the need was becoming evident. As can be seen in Figure 1, sales and net income were beginning to level off after the previously cited phenomenal growth. After doing a market analysis of possible products, Mr. Barnes decided that the baseball card market was a good area for potential new sales. Baseball cards were a popular product not only among youngsters but also among adults who were trying to to generate new products Some packs are more expensive than others due to quality and buyer preference recapture the experience of their youth