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Which of the two scenarios in the spreadsheet should the company pursue and why? Student Exercise Definitely would buy % of Definites who actually buy
Which of the two scenarios in the spreadsheet should the company pursue and why?
Student Exercise Definitely would buy % of "Definites" who actually buy "Definite" Purchases Probably would buy % of "Probables" who actually buy "Probable" Purchases Trial Rate ("Definite" + "Probable Households (MM) Penetration, % of households Awareness ACV Total Trial Households (MM) % of households repurchasing Repeat purchase occasions Total Repeat Purchases (MM) Total Purchases (Trial + Repeat) ( Retail selling price Retail sales volume ($MM) Sell at 65% MSRP Sales Volume (SMM) Scenario 1: Mediocre product with high consumer awareness and high ACV 23% 80% 18% 40% 30% 12% 30% 120.0 92% 20% 79% 5.30 28% 4 5.94 11.24 65% Scenario 2: Excellent product with medium consumer awareness and medium ACV
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Step: 1
To determine which scenario the company should pursue we need to compare the potential profitability and market impact of Scenario 1 and Scenario 2 ba...
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Financial Accounting A Critical Approach
Authors: John Friedlan
4th edition
1259066525, 978-1259066528
