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Sport Science International is considering launching a new sports drink Devil - Ade. With its improved formula, Devil - Ade is expected to penetrate the
Sport Science International is considering launching a new sports drink DevilAde. With its improved formula, DevilAde is expected to penetrate the market quickly. However, DevilAde is likely to appeal to the consumers who currently buy the companys existing product WarriorAde. The sales volume of WarriorAde is currently million bottles per year and is expected to decline by when DevilAde is introduced to the market. The unit sale price and the unit cost of WarriorAde are $ and $ respectively. Estimate the opportunity cost per year ie forgone cash flow from the existing product by taking into account a marginal tax rate of for Sport Science International. Answer show the stepscalculation toward your results:
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