Estimate the incremental revenue to $700 000 what would explain this change?
QUESTION
Taste good chocolates develops a new candy bar and plans to sell this bar for $1. Taste good predicts that 1 million candy bars will be sold in the first year if the new candy bar is produced and sold, and includes $1 million of incremental revenues in its capital budgeting analysis. A senior execut
Taste good chocolates develops a new candy bar and plans to sell this bar for $1. Taste good predicts that 1 million candy bars will be sold in the first year if the new candy bar is produced and sold, and includes $1 million of incremental revenues in its capital budgeting analysis. A senior executive in the company believes that 1 million candy bars will be sold, but lowers the estimate of
ental revenue to $700,000. What would explain this change? a. excessive marketing costs to sell the 1 million candy bars b. a lower discount rate c. cannibalization of 400,000 of taste good chocolates other candy bars d. a higher selling price for the new candy bars
ANSWER:
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