nces 35 21 , AaBbccDc AaBbCcDc AaBbc AaBbcc Normal 1 No Spac... Heading 1 Heading 2 Find Rep! Sele Editin Styles Paragraph Men's USA sells vintage-styled long suits, otherwise known as zoot suits. 1ocy have three zoot suit models: the Apple, MellowFelt, and the Gumdrop. The prices of the models are: S105, $135, and $149, respectively. The variable costs for these models are: $45. $55, and $65. respectively. The demand projected for each model for next year are 10,500. 8,270, and 6.750 units. Suppose they are now considering the addition of another product called the "World Series" priced at $120 with a variable cost of $50. Men's USA expects that they will sell 3.500 units of the new product next year. Fifty percent of the sales will be from cannibalization: 5% from the Apple, 25% from the MellowFelt and 20% of the volume will be from the Gumdrop. The other 50% will come from market growth The marketing costs for the World Series will be $57.000 and design costs will be $10,000 a a. Should Men's USA launch the World Series? Show your calculations. [10] b. Suppose that in year 2, sales of the Apple MellowFelt, and the Gumdrop increase by 10%, 15%, and 12, respectively. If the World Series was launched in the first year, then it is expected that the demand in the second year will increase to 4,250 units Marketing costs in the second year for the World Series will be $40,000. Assuming that cannibalization rates remain the same, would your decision from part (a) change? [10] o 6 a 99 (hp