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please find the contributions lost due to cannibalization. 1,462,500 is wrong Kellogg's maker of Pop-Tarts recently introduced Pop-Tarts Gone Nutty! The new product includes llavors

please find the contributions lost due to cannibalization. 1,462,500 is wrong
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Kellogg's maker of Pop-Tarts recently introduced Pop-Tarts Gone Nutty! The new product includes llavors such as peanut butter and chocolato peanut butter Although the new Gone Nuttyl product will reap a higher wholesale price for the company (51 25 per eight count package of the new product versus $100 per package for the original product), it also comes with higher variable costs (S065 per eight-count package for the new product versus 50 35 por cight.count package for the original product) Assume the company expects to sell 3 million packages of Pop-Tarts Gone Nutty in the first year after introduction but expects that 75 percent of those sales will come from buyers who would normally purchase existing Pop. Tart flavors (that is, cannibalized sales) Assuming the sales of regular Pop-Tarts are normally 320 million packages per year and that the company will incur an increase in fixed costs of $530,000 during the first year to launch Gono, Nutty will the new product be profitable for the company? Determine the unit contributions and the loss for every package cannibalized from the original product (Round to the nearest cent) Loss for every Original Pop-Tarts Gone Pop-Tarts Nutty! package cannibalized Unit contribution S 0.65 $0.6 S 0.05 Contribution lost due to cannibalization is $1462500 (Round to the nearest dollar)

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