CALCULATED VARIABLES: msv = 680 ycontr = $10,560

Course: Western New England Marketing 200 with Janelle Goodnight Spring 2023 Module: Cannibalization / Problem Set ID: 1070 The local shampoo market is dominated by two brands: Clean Hair, which owns 66% of the market, and Sassy, which owns the remainder. A new brand, All-over Shampoo, manufactured by the same makers of Sassy, is attempting to break into the shampoo market with an all-natural shampoo that they claim will strengthen hair as it is washed. The local shampoo market volume is 2,500 bottles per month. All-Over Natural Shampoo sells 500 bottles in their first month. The total market for shampoo is mature and no growth is expected to result from All-over's entry. Variable costs for AllOver Shampoo are estimated at $2.95 per bottle, with a selling price of $4.71. Course: Western New England Marketing 200 with Janelle Goodnight Spring 2023 Module: Cannibalization / Problem Set ID: 1070 The local shampoo market is dominated by two brands: Clean Hair, which owns 66% of the market, and Sassy, which owns the remainder. A new brand, All-over Shampoo, manufactured by the same makers of Sassy, is attempting to break into the shampoo market with an all-natural shampoo that they claim will strengthen hair as it is washed. The local shampoo market volume is 2,500 bottles per month. All-Over Natural Shampoo sells 500 bottles in their first month. The total market for shampoo is mature and no growth is expected to result from All-over's entry. Variable costs for AllOver Shampoo are estimated at $2.95 per bottle, with a selling price of $4.71