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Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will bo low in cholesterol and contain no
Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will bo low in cholesterol and contain no trans fats. The firm expects that sales of the new plzza will be $15 milition por year. While many of these sales will be to new customers, Pisa Pizza estimates that 41% will come from customers who swith to the now, healthier pazza instead of buying the original version. a. Assume customers will spend the same amount on either version. What lovel of incremental sales is associated with introducing the new pizza? b. Suppose that 59% of the customers who will swich from Pisit Pizza's original pizza to its healthier pizza wil switch to another brand if Pisa Pizza does not introduce a healthier pizza. What levol of incremental sales is associated with introducing the now pizza in this case? a. Assume customers wil spend the same amount on either vorsion. What level of incremontal sales is associated with introducing the new pizza? The incremental sales associaled with introducing the new pizza will bes million. (Round to two dacimal places.)
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