EOC 17.07 Consider the problem facing two businesses in the breakfast cereal market, Sugar Bomb cereals and Crunch Time cereal. Each company has just come up with an idea for a new cereal, which it would sell for $5. Assume that the marginal cost for each new cereal is a constant $3 and the only fixed cost is advertising. Each company knows that if it spends $8 million on advertising, it will get 2 million consumers to try its new product. Sugar Bomb's market research suggests that its cereal does not have any staying power in the market. Even though it could get 2 million consumers to buy the product once, it is unlikely that they will continue to buy the product in the future. Crunch Time's research suggests that its product is very good, and consumers who try the product will continue to be consumers over the ensuing year. On the basis of its market research, Crunch Time estimates that its initial 2 million customers will buy one unit of the product each month in the coming year, for a total of 24 million units. Given this information we should expect to advertise and to earn total profit of from this new product. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Crunch Time; $112 million b Crunch Time; $40 million Crunch Time; $48 million d both businesses; $48 million e both businesses; $112 million f both businesses; $114 million