Question: 2.an internal search. 3.an external search. 4.a purchase task 8. Product Cannibalism (10 Points) products. e way its impact on exiting products should influence new
2.an internal search. 3.an external search. 4.a purchase task 8. Product Cannibalism (10 Points) products. e way its impact on exiting products should influence new b. Product Cannibalism problem (7 points): A toothpaste manufacturer is concerned about a co flavored toothpaste and in anticipation of that has decided to do a line extension of it's product Breath-Fresh. The new line extension will be called Peppermint Breath Fresh. Breath Fresh currently sells 50,000 tubes of toothpaste per year. It 1s calculated from research that Peppermint Breath-Fresh will sell 60,000 tubes per year of which 10,000 will be cannibalized from Fresh-Breath. The following are the relevant selling price and costs of each. Should the company introduce the new toothpaste based on their requirement for all new products to generate addition gross profit in their first year. competitor introducing a new al Product Selling Price Variable Costs Fresh-Breath Peppermint Fresh-Breath $3.00 $4.50 $1.50 $2.25
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