Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer buisness question Shapes Cors Pea Puza, a seller of frozen pizza is considering Introducing a healthier version of its purze that will be

please answer buisness question
image text in transcribed
Shapes Cors Pea Puza, a seller of frozen pizza is considering Introducing a healthier version of its purze that will be low in cholesterol and contain no wafat. The timp that sales of the www pizza will be $18 million per year while many of these will be to ww customers in Pettenthal 46% w from cus who witch to the new healthier plantead of buying the original version Asume customers will spend the same amount on the version. What level of incremental sales associated with introducing the new pa? 1. Suppose that 63% of the customers who will switch from Plesa original puza to its health p will with to other and it has not introduce healthier plaza What level of incremental sales is associated with introducing the new plans in this case? a. Am cuntomers will spend the same amount on the version What level of incremental dissociated with noducing the mwa? The incremental sales annociated with Introducing the new prawalbe s million (Round to two decimal place) 1. Suppose that 53% of the customers who will witch from Pha Plaza's original punto in healthier pleza will switch to her bed Parades not intrathon a healthier pizza What level of incrementalaissod with introducing the new pura in this case 53% of the customers who will switch from Pisa Puza's original pizza to its healthier puza will switch to another brand if Pisa Plaza does not introduce a health pizza, then the incremental sales will be 5 million (Round to two decimal places) n Daily Enterprises is purchasing a 510 4 million machine. It will cost $40,000 to transport and install the machine. The machine has a depreciable for five years using straight-line depreciation and will have no salvage value. The machine will generato incremental revenues of 54.2 million per year along with incremental costs of 511 million per year Daily s marginal tax rate is 35% You are forecasting incremental free cash flows for Daily Enterprises What are the incremental free cash flows associated with the new machine The tree cash flow for your will be s Round to the nearest dolle > The tree cash flow for years 1-6 will be 5 Round to the nearest dollar)

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

Principles Of Commercial Real Estate Finance

Authors: Gail Ramshaw, Mortgage Bank

1st Edition

0793157099, 9780793157099

More Books

Students also viewed these Finance questions

Question

Define positive thinking and cite its benefits.

Answered: 1 week ago