Question
The use of the website for direct sales via the internt is expected to cannibalize retail sales volume by 30,000 units. Assuming an initial retail
The use of the website for direct sales via the internt is expected to cannibalize retail sales volume by 30,000 units. Assuming an initial retail sales projection (that is, sales without cannibalization) of 200,000 units and expected website sales of 70,000 units, what is the net financial impact of including direct sales as part of Clean Cuts distribution strategy
A. The company will have a net loss in contribution by using both channels.
B. The company will have a net loss of contibution via the retail channel but a net gain via the internet channel.
C. The company will break-even by having both channels.
D. The company will have a net gain in contribution by having both channels.
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