EasyFind, Inc. sells StraightShot golf balls for $22 per dozen, with a variable manufacturing cost of $14 per dozen. Eas

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Easyfind Inc Sells Straightshot Golf Balls For 22 Per Dozen With A Variable Manufacturing Cost Of 14 Per Dozen Eas 1 (41.2 KiB) Viewed 74 times

EasyFind, Inc. sells StraightShot golf balls for $22 per dozen, with a variable manufacturing cost of $14 per dozen. EasyFind is planning to introduce a lower priced ball, Duffer's Delite, that will sell for $12 per dozen with a variable manufacturing cost of $5 per dozen. The firm currently sells 50,900 StraightShot units per year and expects to sell 21,300 units of the new Duffer's Delight golf ball if it is introduced (1 unit = 12 golf balls packaged together). Management projects the fixed costs for launching Duffer's Delight golf balls to be $9,030 If StraightShot sales drop to 44,000 units sold after the launch of Duffer's Delite, what is the cannibalization rate [the percentage of new product sales coming from an existing product] of Duffer's Delite golf balls on StraightShot golf balls? PS1 1 2 0.0% percent 3 4 5 SUBMIT ANSWER EXIT PRACTICE CALCULATED VARIABLES: ycontr = $407,200 ucontr= $8.00