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  • Niche Mainstream Year-1 Year-2 Year-1 Year-2 Razor

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    The document compares sales, costs, and profits of razors and replacement cartridges for a niche and mainstream brand over two years. For both brands, unit sales and total sales increased in year 2 for both razors and cartridges. Total costs also increased in year 2, but profits increased more substantially for the mainstream brand, going from a loss in year 1 to a profit in year 2, after accounting for cannibalization costs of existing product sales.

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    Original Title

    Clean Edge Razor Financials

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    The document compares sales, costs, and profits of razors and replacement cartridges for a niche and mainstream brand over two years. For both brands, unit sales and total sales increased in year 2 for both razors and cartridges. Total costs also increased in year 2, but profits increased more substantially for the mainstream brand, going from a loss in year 1 to a profit in year 2, after accounting for cannibalization costs of existing product sales.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    26 views1 page

    Niche Mainstream Year-1 Year-2 Year-1 Year-2 Razor

    Uploaded by

    rohit
    The document compares sales, costs, and profits of razors and replacement cartridges for a niche and mainstream brand over two years. For both brands, unit sales and total sales increased in year 2 for both razors and cartridges. Total costs also increased in year 2, but profits increased more substantially for the mainstream brand, going from a loss in year 1 to a profit in year 2, after accounting for cannibalization costs of existing product sales.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 1

    Niche Mainstream

    Year-1 Year-2 Year-1 Year-2


    Razor
    unit 1 1.5 3.3 4
    per unit MSP 9.09 9.09 7.83 7.83
    sales 9.09 13.64 25.84 31.32
    Cartridge
    unit 4 10 9.9 21.9
    per unit MSP 7.35 7.35 6.22 6.22
    sales 29.4 73.5 61.58 136.22
    Total Sales 38.49 87.135 87.417 167.538
    Cost
    per production cost Razor 5 5 4.74 4.74
    Production cost Razor 5 7.5 15.64 18.96
    per production cost cartridge 2.43 2.43 2.24 2.24
    Production cost cartridge 9.72 24.30 22.18 49.06
    Capacity cost 0.61 0.87 1.71 2.45
    A&P 15 16 42.00 39.00
    Total Cost 30.33 48.67 81.53 109.47
    Profit 8.16 38.47 5.89 58.07
    Razor Cannibalization cost 0.62 0.92 3.48 4.22
    Cartridge cannibalization cost 3.92 9.80 16.63 36.79
    Net profit 3.62 27.74 -14.23 17.06

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