Niche Mainstream Yr 1 Yr 2 Yr1 Yr 2 Planned Volume for Clean Brush (in millions) 1
Fantastic news! We've Found the answer you've been seeking!
Question:
| Niche | Mainstream | |||
| Yr 1 | Yr 2 | Yr1 | Yr 2 | |
| Planned Volume for Clean Brush (in millions) | 1 | 1.5 | 3.3 | 4 |
| Planned Volume for Clean Brush brush replacements (in millions) | 4 | 10 | 9.9 | 21.9 |
| Clean Brush Manufacturing Price | $9.09 | $9.09 | $7.83 | $7.83 |
| Clean Brush Unit Cost | $5.00 | $5.00 | $4.74 | $4.74 |
| Clean Brush Brush replacements Manufacturing Price | $7.35 | $7.35 | $6.22 | $6.22 |
| Clean Brush Brush replacements unit cost | $2.43 | $2.42 | $2.24 | $2.24 |
| Estimated Total Profits for Clean Brush (without cannibilization) (in millions) | 8.16 | 38.456 | 5.889 | 58.072 |
Calculate the cost of cannibalization for each market. If Clean Brush decides to go mainstream, 60% of their sales will come form the Whiter and Fresh Brush lines. If Clean Brush decides to go niche market, 35% of their sales will come from Whiter and Fresh Brush lines. Contribution Margins for Whiter and Fresh Brushes is $1.76. Contribution margin for Whiter and Fresh Brush Brush replacements is $2.80.
Expert Answer:
Related Book For 
Posted Date:
