Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the last year, Bakers Score's Donuts and Sweets has sold, on average,1,228''Fudgie'' brownies per week. This week they introduced fat-free brownies and sold240at a

In the last year, Bakers Score's Donuts and Sweets has sold, on average,1,228''Fudgie'' brownies per week. This week they introduced fat-free brownies and sold240at a price of$4each. They noticed the cannibalization rate of fat-free brownies on Fudgie brownies was43%. Bakers Score's sells their "Fudgie" brownies for$3, with a variable cost of$1. The new Fat-Free Brownies have a variable cost of$2.

In week 2, "Fudgie" brownie sales dropped to 850 units sold, while sales for Fat-Free brownies remained constant. If all of the decrease in Fudgie sales is due to the fat-free product, what would be the cannibalization rate based on week 2 sales figures instead of the previous week's?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advertising and Promotion An Integrated Marketing Communications Perspective

Authors: George Belch, Michael Belch

10th Edition

78028973, 978-0078028977

More Books

Students also viewed these Marketing questions

Question

3-30. Did the sender choose an appropriate medium for the message?

Answered: 1 week ago

Question

3-29. Was the message well timed?

Answered: 1 week ago