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Determining relevant cash flows ) Captain's Cereal is considering introducing a variation of its current breakfast cereal, Crunch Stuff. This new cereal will be similar
Determining relevant cash flows Captain's Cereal is
considering introducing a variation of its current breakfast
cereal, Crunch Stuff. This new cereal will be similar to the old,
with the exception that it will contain sugarcoated marshmallows
shaped in the form of stars. The new cereal will be called Crunch
Stuff n Stars. It is estimated that the sales for the new cereal
will be $million; however, percent of those sales will draw
from former Crunch Stuff customers who have switched to Crunch
Stuff n Stars and who would not have switched if the new product
had not been introduced. What is the relevant sales level to
consider when deciding whether or not to introduce Crunch Stuff n
Stars?
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