Keep in mind that sales are increasing every year by 9%, but the $500,000 decrease in the sales of the existing apple juice remains constant every year. When calculating sales numbers in subsequent years DO NOT do PreviousSales*1.09 as this calculation would assume that the $500,000 also increases by 9% per year. Use a formula that allows the sales of the new product to grow by 9% per year, but the 500000 to remain constant. When calculating the variable cost use the same sales number that you are using in Row 31, which should account for the sales erosion (DO NOT calculate the variable cost solely on the sales of the new product). The rationale for this is that if the sales of the apple juice are declining, so are the variable costs associated with those sales; hence, this product, while decreasing sales of other products, is also saving on the variable costs associated with those products