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Would be great if you could show your work. Thank Question 4 25 pts A friend of yours is a small quilting supplies retailer. Currently
Would be great if you could show your work. Thank
Question 4 25 pts A friend of yours is a small quilting supplies retailer. Currently she sells only one model of quilting table (the A100), but is considering adding another (the B999). She needs your help in determining if adding a second model is a good idea or not. Last month, she sold 32 of A100 model at a price of $375. Her cost is $179. She expects to sell the same volume of the A100 next month. 1. What is her total monthly contribution from the A100? 2. The new model, the B999, would retail for $429 at a cost of $209. She estimates she would sell 8 in the first month. What would be her total monthly contribution from the B999? 3. She expects that the introduction of the B999 will cannibalize 30% of her sales of the A100. Based on this, how many sales of the A100 would be lost due to the introduction of the B999? 4. Given the cannibalization rate of 30%, what will be her total monthly contribution of the A100? 5. And what would be her total monthly contribution overallStep by Step Solution
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