Use the information in Table 2 to develop a profit forecast for the KeurigKold. (Please show all work).

a. What does the profit forecast reveal? What implications do these results have for the marketing of the new product?

b. Given the break-even calculations above, do you expect this product to be successful for the firm? Why or why not?

Trial Purchase Rate Definitely would buy Probably would buy U.S. Households (in millions) Penetration 10% Repeat Purchase Rate 22% 123.2 Consumer Awareness 48% Repeat Purchase Occasions Availability (% of distributors) Price (average) 25% 5% 2 62% $329