Question
The local shampoo market is dominated by two brands: Clean Hair, which owns 61% of the market, and Sassy, which owns the remainder. A new
The local shampoo market is dominated by two brands: Clean Hair, which owns 61% of the market, and Sassy, which owns the remainder. A new brand, All-Over Shampoo, manufactured by the same makers of Sassy, is attempting to break into the shampoo market with an all-natural shampoo that they claim will strengthen hair as it is washed. The local shampoo market volume is 2,300 bottles per month. All-Over Natural Shampoo sells 400 bottles in their first month. The total market for shampoo is mature and no growth is expected to result from All-Over's entry. Variable costs for All-Over Shampoo are estimated at $2.99 per bottle, with a selling price of $4.66.
Assuming fair share draw, what will Sassy's new monthly sales volume be after the launch of All-Over Natural shampoo?
CALCULATED VARIABLES: ycontr = $8,016
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