Suppose that 65% of the customers who will switch from Pisa Pizza's original pizza to its healthier pizza will switch to another brand if Pisa Pizza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza? To determine the incremental sales, use the following formula: Incremental Sales=Sales of new pizza−Lost sales of original pizza Therefore, Incremental Sales= $26 million−(0.51×$26 million)=$12.74 million The incremental sales associated with introducing the new pizza will be $12.74 million. ![]() ![]() Assume customers will spend the same amount on either version.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |