Question: Where does cannabalization go on a Projected Income Statement? I do not have the sales of the current product, jist expected sales of a new
Where does cannabalization go on a Projected Income Statement? I do not have the sales of the current product, jist expected sales of a new product and the expected cannabalization of 980 units of the current product, at $2.50 per unit, and a cost of 31 percent of the sales. Do you use the net profit of the cannabalized product as a cost or the actual cannabalized sales?
Step by Step Solution
3.49 Rating (159 Votes )
There are 3 Steps involved in it
To properly address the question of how cannibalization should be represented on a projected income statement we need to break it down into a few key ... View full answer
Get step-by-step solutions from verified subject matter experts
