Question No. 3

Ericson tech. currently sell 100,000 of its light Wi-Fi repeaters each year, for $130.50 per device.

Its cost per device is $70. The company has come up with a newer, powerful repeater, Extra-boost, which costs $200.00 per device, with retail for $340.00 and should bring in 130,000 new customers (unit sales).

What is erosion cost if sales of old devise go down by 20%, what is incremental sales cashflow, is the new devise worth launching

Question No. 3 Ericson tech. currently sell 100,000 of its light Wi-Fi repeaters each year, for $130.50 per device. Its cost per device is $70. The company has come up with a newer, powerful repeater, Extra-boost," which costs $200.00 per device, with retail for $340.00 and should bring in 130,000 new customers (unit sales). What is erosion cost if sales of old devise go down by 20%, what is incremental sales cashflow, is the new devise worth launching