Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Leaf's Paper Company is planning to launch a new notebook product that is water resistant. The company wants to sell 3 0 , 0 0

Leaf's Paper Company is planning to launch a new notebook product that is water resistant. The company wants to sell 30,000,000 of the new notebooks next year and wants to know what trial rate is required to achieve this goal. The market research group forecasts an awareness rate of 72% and an ACV% of 56%. Of those that try the product by purchasing 1 notebook, 29% will repurchase 5 notebooks per year. There are 160,000,000 notebook consumers in the target market. Total fixed costs to Leaf Paper Company to manufacture this new notebook are $9,500,000, with variable costs of $2.56 per notebook.
In order to achieve the original sales goal of 30,000,000 notebooks, what ACV% will be required if Leaf instead achieves a 10% repeat purchase rate and a trial rate of 20%?

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_2

Step: 3

blur-text-image_3

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

Fundamentals Of Project Management

Authors: Joseph Heagney

6th Edition

140023526X, 978-1400235261

More Books

Students also viewed these General Management questions