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You are an artist. You sell signed, limited edition prints of your work for $299. Each print costs you $91 to make. You typically sell
You are an artist. You sell signed, limited edition prints of your work for $299. Each print costs you $91 to make. You typically sell 100 prints per year, a number that hasn't changed for several years. Your fixed costs are about $5,000 per year. Last year, you started selling lower quality posters of your work for $106. These posters cost you $17 to make. You outsource the prodion of the posters new product does not add to your fixed costs. You sold 1,000 of these posters last year, but the number of limited edition prints you sold dropped to 80. What is your break-even cannibalization rate? Please be sure to either use the \% symbol or answer using decimals. For example, write either "45\% " or .45
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