Question: please answer both and show step by step Your company is planning on introducing a new residential smoke detector at the start of next year.
Your company is planning on introducing a new residential smoke detector at the start of next year. The COS2013 carbon monoxide and smoke arm to be called the Life Saver il monitors and detects harmful smoke and carbon monoxide gast measures the concentration of CO or smoke and sounds a loud m patter when potentially furmullovel is reached the farm is designed to detect both fant burning and slow smoldering fires. The type of mis vily indicated by an arm icon. The new model is a 120 volt hardwire combination smoke and carbon monoxide sam using the latest ionization photoelectric and semiconductor technology Features include visual alarm icons or both smoke and Constant test and retentature, Interconnectability for up to 12 units amptencer feature, an 85 de slarm pattern, a 5 year warranty and UL GULE sted The COS2013 is dearly superior to your other lines but will stay carry a lower price due to the lower cost of the new technology. Your company is reals that competitors possess similar technology and cost structures which necessitate the Introduction of the new arm. Your company will continue to sell its current product: the LifeSaver . Your bous asked you to assess the impact of Cannibalization on the company's projected to al contribution margin The LifeSaver is priced at $47 and has unit variable costs of $26. The LifeSaveri will be priced at $42 and will carry unitable costs of $22 First year LifeSaveri sales are projects 375.000 units. The company had expected to sell 450.000 Life Saver arm, without the introduction of the Save While difficult to estimate the company believes that about 200.000 Sers will be cannibalized by the introduction of the Life Saver Calculate the projected 2013 total contribution margin for levert Your Answer Answer Question 4 (10 points Your company is planning an introducing a new residencial detector at the start of next year. The COS2013 carbon monoxide and smoke alarm to be called the LifeSaver il monitors and detects hall smoke and carbon monoxide gas measures the concentration of CO or smoke and sounds a loud sam pattern when potentially harmful level is reached the storm is designed to detect both fast buming and slow moldering fires. The type of sibly indicated by an atam icon. The new model is a 120 volt hand combinations and carbon monoxide alarm using the latest inition, photococtric and somiconductor technology. Features include islam icons or both smoke and COL. instant test and retast feature, interconnectability for up to 12 pune silencer feature, an 25 de arm pattery way and UL SUL The COS2013 is dearly superior to your other lines but will actually canya price due to the lower cost of the new technology. Your company also calls that competitors possessimilar technology and cost structures which necessitate the introduction of the new am your company will continue to securrent product the LifeSaver L Your boss has asked you to the impact of cannibalization on the company's projected total contribution margin The LifeSaveris priced at 547 and has unit variable costs of The Lover will be priced at $99 and will carry unit al costs of First year over sales are projected at 375.000 units. The company had spected to 450.000 Life Saver arms without the introduction of taver i Wie ditto estimate the company believes that about 200.000 Lobecnikad by the introduction of the Life Saver Calculate the projected 2015 total contribution margin for both Land Litoveril
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
