identifying incremental revenues from new product innovations) Morten Food Products, Inc. is a regional manufacturer of salty food snacks. The firm competes directly with the national brands including Fro-Lay, but only in the U.S. Southeast Last year Morten sold $300 milion of its various chip products and hopes to increase sales in the coming year by offering a new line of band chips The new product line is expected to generate $42 milion in se next year However, the firm's analysts estimate that about 45 percent of these revences will come from existing customers who switch the purchases from one of the finishing products to the new healthier baked che a. What we of incremental sales should the company analyse to the new line of baked chips? b. Assume that 10 percent of Morten's wat omtomen are actively looking for healthier nock alternative and will move to another company's baked chip offering Morton does not reduce the new product What level of incrementales would you attribute to the new sine of baked chips in this circumstance? The level of cremental sales that the company analyst should attribute to the new ine of baked chest (Round to the rest dollar) working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $790.000. Tetious Dimensions has a 31 percent marginal tax rate this project will also produce $185,000 of depreciation per year In addition, this project will cause the following changes in year 1 Without the Project With the Project Accounts receivable $53,000 $88 000 Inventory 94.000 183.000 Accounts payable 69.000 125,000 (Cick on the icon in order to copy its content into a spreadsheet) What is the project's free cash flow in year 1? The tree cash flow of the project in year 1 Round to the nearest dollar (Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of $320,000 Duncan Motors has a 32 percent marginal tax rate. This project will also produce $53,000 of depreciation per year. In addition, this project will cause the following changes in year 1 Accounts receivable Inventory Accounts payable Without the Project $32.000 31000 53,000 With the Project $17.000 42.000 83,000 The free cashow of the project in year 15 (Round to the nearest dollar