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  • Assignments of Lecture 2

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    Hazem Amin
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    The document shows sales earnings from Salty Chips, French Cheese, and a new Spicy product both before and after the launch of the new Spicy product. It reveals that while Salty Chips and French Cheese earnings declined after the launch, total sales and gross profit increased, indicating the new product was successful and increased overall company performance despite some impact on existing product lines.

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    The document shows sales earnings from Salty Chips, French Cheese, and a new Spicy product both before and after the launch of the new Spicy product. It reveals that while Salty Chips and French Cheese earnings declined after the launch, total sales and gross profit increased, indicating the new product was successful and increased overall company performance despite some impact on existing product lines.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    7 views3 pages

    Assignments of Lecture 2

    Uploaded by

    Hazem Amin
    The document shows sales earnings from Salty Chips, French Cheese, and a new Spicy product both before and after the launch of the new Spicy product. It reveals that while Salty Chips and French Cheese earnings declined after the launch, total sales and gross profit increased, indicating the new product was successful and increased overall company performance despite some impact on existing product lines.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    Before Launching New

    After
    Product
    Launching
    (Spicy)
    New Product (Spicy)
    Salty Chips Earnings Before
    20,000,000.00 16,000,000.00
    Launching New Product
    French Cheese Earnings Before
    10,000,000.00 9,500,000.00
    Launching New Product
    New Product (Spicy) Earnings 0.00 8,000,000.00
    Total Sales Earnings 30,000,000.00 33,500,000.00
    COGS 24,000,000.00 26,800,000.00
    Gross Profit 6,000,000.00 6,700,000.00
    Q. No Case Answer
    1 Coca Cola Co. Csae No

    2 Lexmark Co. Case yes

    3 Weistein Co. Case Yes

    4 IMC Co. Case No


    Justification
    (Market Analysis)It is Sunk Cost

    Opportunity Cost

    Opportunity Cost

    Some owners will replace (Cannibalization).

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