m&m premiums

Project Description:

2. assume the company expects to sell 300 million ounces of m&m premiums within the first year after introduction but expects that half of those sales will come from buyers who would normally purchase m&m regular candies (that is, cannibalized sales). assuming the sales of regular m&m candies are normally 1 billion ounces per year and that the company will incur an increase in fixed costs of $5 million during the first year of production for m&m premiums, will the new product be profitable for the company?
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Price Type: Negotiable

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