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Please answer ASAP, need help. Thank you in advance. 6. (14 points) Retail Associates (RA) has decided to introduce into its supermarke paper products line
Please answer ASAP, need help. Thank you in advance. 6. (14 points) Retail Associates (RA) has decided to introduce into its supermarke paper products line under its own private label brand on wi sells in its stores. Its first product introduction in its Evergreen line of products is sells 17,125,000 units of all brands of bathroom tissue in all its stores. Each unit an environmentally friendly to compete head on with national and regional brands that it Sells 17,125,.sirst product inoui 000 units of all brands of bathroom tissue in all its stores. (Each unit represents a packagof u Stan projected that the unit costs RA S2.29 to produce and deliver to its stores. , the category manager for the Evergreen line at RA, has set a price of $2.99 per unit and new line of bathroom tissue will achieve a 10% market share. Each Evergreen bathroom tissue Stan assumes that halfof the 10% market share that the Evergreen tissue wi ill achieve will be cannibalized from the contribut competing national brands and the other half will be derived from regional brands. The national brands e a unit profit of 30 cents per unit, and the regional brands contribute 60 cents per unit. a. W hat is the apparent profit contribution of the Evergreen product before cannibalization? b. What is the actual profit contribution of the Evergreen product after cannibalization
Please answer ASAP, need help. Thank you in advance.
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